The rental market in London, Amsterdam, and Paris is facing unique challenges and trends in May 2024. London’s market is characterised by high demand and regulatory uncertainty due to the upcoming general election. Amsterdam is grappling with new housing regulations aimed at controlling the market but potentially limiting supply. The upcoming Olympics are driving a rental boom in Paris, which has significant effects on both short-term and long-term rental availability. If you’re relocating to any of these locations, keep reading to learn more.
London Rental Market Latest
The London rental market continued to experience significant demand and increasing rental prices in May. Due to a combination of low supply and high demand, average rents in the city have increased by about 5% year over year. The scarcity of rental properties, particularly in central areas, has led to competitive bidding among tenants, further pushing prices upward. However, the good news is that price growth is slowing and rents have started to reach an affordability ceiling.
The uncertainty surrounding the Renters Reform Bill, which aims to abolish Section 21 ‘no-fault’ evictions and introduce other tenant protections, is causing concern among landlords. With a general election expected later in 2024, the bill’s future remains uncertain. The potential for changes in government could see different approaches to rental market regulations, adding to the uncertainty for both landlords and tenants.
Average Monthly Rents in London
In May, every type of property that Adleo tracks had risen in cost. A three-bedroom apartment in the suburbs now costs €3,362 pcm. The same-sized property, a three bedroom apartment in the city centre, is now €5,201 pcm. Smaller properties are also more costly. A one-bedroom apartment in central London is now €2,507 pcm, while a one-bedroom apartment in the suburbs costs €1,889 pcm.
Amsterdam Rental Market Latest
Amsterdam’s rental market remains one of the most competitive in Europe. Rental prices have increased by around 3% over the past year. The Dutch government’s recent regulations to control the housing market, including rent caps and increased tenant protections, have had mixed effects. While these measures aim to make housing more affordable, they have also led some landlords to withdraw properties from the market, exacerbating the supply shortage.
In April 2024, the Dutch government implemented new regulations to further control the rental market. These regulations include stricter rent controls and more robust tenant protections. The intention is to make housing more accessible and affordable, but critics argue that it will discourage investment in rental properties, further reducing the availability of rental housing in the long term.
Average Monthly Rents in Amsterdam
Currently, a one-bedroom apartment in central Amsterdam costs around €1,924 per month. For a three-bedroom apartment, the average rent is approximately €3,291 per month. In the suburbs, rents are somewhat lower, with a one-bedroom apartment averaging €1,577 and a three-bedroom apartment around €2,483 per month.
Paris Rental Market Latest
As we’ve mentioned before, Paris is gearing up for the 2024 Summer Olympics, and this major event continues to have a noticeable impact on the rental market. As the city prepares to host a global audience, rental prices, particularly for short-term leases, have surged. Average rents have increased by about 4% compared to last year.
The Paris Olympics are expected to bring significant economic benefits to the city but are also contributing to a tighter rental market. Many landlords are opting for short-term rentals to capitalise on the expected high demand during the event. This trend is reducing the availability of long-term rental properties, making it more challenging for local residents to find housing.
Average Monthly Rents in Paris
In central Paris, the average rent for a one-bedroom apartment is now around €1,342 per month, while a three-bedroom apartment costs about €3,051 per month. In the suburbs, these figures are slightly lower, with a one-bedroom apartment averaging €989 and a three-bedroom apartment at approximately €2,260 per month.
Need to Secure a Rental Property?
Adleo 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, rounded & taken from Numbeo, 30th May 2024.
