To summarise the key points from our September 2023 Rental Market Overview, tenants in London are facing increasingly high rents, which have eaten up the largest percentage of their gross income in recent years. The demand for rental property in Paris has increased, while supply has decreased significantly, making it difficult for those looking to rent. Finally, renters in Amsterdam, particularly those in properties built after 2010, are experiencing increased noise and environmental pollution. Keep an eye on the Klippa Relocation Blog for helpful tips and insights into the ever-changing rental market landscape in various European cities.
London Rental Market Latest
While at risk of sounding like a broken record, year-on-year rents continue to rise in London. The bigger picture is of a nation at the mercy of monthly increases, with the agent Hamptons reporting that UK residential rents for newly-advertised properties jumped by 12% in the year to August 2023. The hike was most pronounced in the capital city, where rents rose by 17% in the last 12 months. With London tenants experiencing double-digit rent increases in 16 of the last 18 months, it comes as no surprise that Hamptons puts the average per calendar month (pcm) rent in the capital at £2,332. Figures from Dataloft suggest the median London renter now spends 30% of their gross income on rent – the highest percentage in five years.
Average Monthly Rents in London
However, there has been some rental price movement in the last four weeks, with three of the property types that Klippa tracks becoming marginally cheaper to rent in September when compared to August. The biggest drop in cost is attached to a one-bedroom apartment in the city suburbs – down from €1,740.77 pcm to €1,708.70 pcm. A single-digit reduction was noted for a one-bedroom city centre apartment, which decreased in price by €8 and is now €2,422.98 pcm. It’s a similar story for a three-bedroom apartment in London’s suburbs, becoming €5 cheaper – down from €2,976.56 pcm to €2,971.91 pcm. Only a three-bedroom apartment in the city centre was more expensive to rent in September, up from €4,634.17 pcm to €4,695.32 pcm.
Amsterdam Rental Market Latest
Academic research has revealed that tenants staying in privately rented accommodation in Amsterdam experience more noise and environmental pollution than homeowners. In addition, the study by the University of Amsterdam revealed that those renting properties that were built after 2010 were more likely to be affected due to their location, although it found all private tenants were at an environmental disadvantage. The study pinpointed new developments in Schiphol, the docklands and along the A10 ring road as troublesome hotspots, with properties often built near train tracks, harbours, or industry as the densification in the city increased.
Average Monthly Rents in Amsterdam
After months of rent rises, there was a reprieve in real-time rents during September. All four of the property types monitored by Klippa fell in cost. Starting in the city centre, a one-bedroom apartment is less expensive to rent, down from €1,763.33 pcm to €1,735.14 pcm. It’s also cheaper to rent a three-bedroom city centre pad, which has dropped in value from €2,706.27 pcm to €2,640.43 pcm. There’s also better value-for-money in Amsterdam’s suburbs. A one-bedroom apartment away from the city heart has reduced in cost from €1,378.70 pcm to €1,358.57 pcm. Likewise, a three-bedroom apartment in the suburbs – down from €2,049.13 pcm to €2,019.54 pcm.
Paris Rental Market Latest
France as a whole continues to be gripped by rental fever. A study by the country’s largest estate agents’ federation, Fnaim, discovered demand for rental properties increased by 23% across the country. The Paca region (Provence-Alpes-Côte d’Azur) reported the highest demand, up 42%, followed by Paris (36%), and Nouvelle-Aquitaine (28%). In contrast, the number of properties on the rental market has dropped by 34% in the last 12 months, with far more tenants than rental homes available. Fnaim also found that around half of all estate agencies in the country have fewer than 10 properties available to rent at any given time, with 10% not having any. Paris has seen the second biggest fall in rental supply – 40% in 12 months – while demand from Paris tenants rose by 36%.
Average Monthly Rents in Paris
Renting a small property in the heart of Paris has become more expensive month-on-month. The cost of a one-bedroom apartment in the centre has risen from €1,285.11 pcm to €1,301.60 pcm. Elsewhere, the cost of renting in the city has stayed the same or fallen. There was little change – a matter of four cents – in the price of renting a three-bedroom apartment in the Paris suburbs, down from €2,026.32 in August to €2,026.28 pcm in September. Three bedrooms in the city centre are now fractionally cheaper, decreasing from €2,880.72 pcm to €2,857.03 pcm. A marginal drop was also noted for a one-bedroom apartment in the Paris suburbs – down from €939.78 pcm to €931.89 pcm.
Need to Secure a Rental Property?
Klippa Relocation has established agents working across London, Amsterdam and Paris. We have enviable relationships with each city’s leading real estate agents and property finders, so please get in touch if you need help with the local rental market.
*Average monthly rental figures, expressed in Euros & taken from Numbeo, 22nd September 2023