London has been named the most expensive city in Europe for renting accommodation for a third consecutive year, according to new research.
The average price of an unfurnished, three-bedroom apartment in prime areas of London is £5,398 a month, while the European average is £1,705, figures from consultancy ECA International show.
In Paris, rents are around half of those in London, at £2,747 a month, while in Amsterdam rental accommodation costs an average of £2,632 per month.
Londoners also pay significantly more than other British renters. In fact, London rent for professionals is almost four times more expensive than the average rent of £1,427 in other major UK cities.
Alec Smith of ECA International said that Manchester, Edinburgh and Glasgow had recorded the biggest rent increases over the past year, due to high demand for rental property.
On the other hand, Aberdeen, which has suffered from the downturn in the oil and gas industry and the subsequent loss of residents, who are seeking jobs elsewhere, has seen rental prices fall by 16pc.
Although London rent still remains the most expensive in Europe, the collapse in the value of the pound since the EU referendum vote in June 2016 has caused the capital to fall down the global rankings, moving down from 4th place in 2016 and 2017, to 5th place this year, behind the likes of Port Moresby in Papua New Guinea and Hong Kong
For the first time, Dublin has entered the rankings of priciest cities for renting due to an influx of relocated staff from international companies looking to take advantage of Ireland’s low corporate tax rate.
In addition, Mr Smith said the global financial crisis exposed a property bubble in the Irish capital, and rents have increased significantly with each subsequent year of recovery.
Rental costs in each location are based on mid-market professional accommodation in “prime areas”, which are assessed on the basis of a number of elements including safety, popularity among expatriates, commuting times and amenities nearby.
A recent report by buy-to-let lender Landbay revealed that rents across the UK fell for the first time in five years in November, with slow rental growth in London dragging down the national average.
While growth in London is subdued, rents remain, on average, 2.5 times greater than those across the rest of the UK. A three-bed property costs an average £2,669 in the capital, based on prices across all of the city’s boroughs.
Changes to stamp duty in 2016 led to a rush from landlords to purchase buy-to-let properties before the change was implemented, which increased the supply of rental accommodation across prime areas of London. This created more competition among landlords, which in turn has contributed to the modest falls in average rent in the UK capital.
Source: Telegraph Property