The Strategist

ECA International: Rent in London is the most expensive in Europe

01/24/2018 - 13:57

London turned out to be the most expensive European city for renting a standard family three-room house of the middle class. However, rent here is three times higher than in other cities in the UK, as evidenced by recent research.

So, a house in the UK capital will cost an average of £ 5,398 per month, which is £ 3,693 more expensive than the average monthly rent in Europe. As for the other big British cities, the average monthly payout is £ 1,427.

Meanwhile, the rental rates in Dublin (Northern Ireland) also increased, reaching a value of £ 2,688 / month for the first time. According to the latest report of world experts of ECA International, Dublin entered the top ten most expensive European cities. The data show that the biggest increase in rents in the UK was in Manchester, Edinburgh and Glasgow due to high demand for residential real estate. In Aberdeen, the decline in the oil and gas industry provoked a 16 percent decrease in prices in the rental housing market.

Alec Smith is Manager of the Accommodation Services team ECA International. He believes that although today rental housing in the English capital remains the most expensive in Europe, the fall in the value of the pound sterling will serve as a reason for the surrender of positions, and London may fall in the ranking to fifth place, losing the leadership to Port-Moresby, the capital of Papua New Guinea.

"In the financial sector of London, there is still a lot of uncertainty about Brexit. It remains to be seen whether the financial situation in the capital will change, because the United Kingdom will leave the European Union, "Smith said.

"Changes in stamp duty in 2016 led to the fact that (potential) landlords are now in a hurry to buy real estate for subsequent delivery. Supply of rental housing increased in the main areas of London, and higher competition contributed to a small drop in monthly fees, although the capital remains the most expensive European city to rent housing," - the expert added.

Alec Smith noted that there has been a significant change in the state of the rental market in Dublin over the past decade. According to him, the global financial crisis revealed a bubble in the Irish capital on the real estate market, and rents increased substantially with each subsequent year of recovery. In addition, the growth in rental rates contributed to the increased demand from international companies that moved branches there, seeking to use the low corporate tax of Ireland.

Similarly, Eastern European cities have seen a rapid increase in the cost of renting housing by almost £ 2000 per month. Prague and Warsaw have risen in the ranking by more than ten positions relative to 2017. "The local economy of these and other similar large Eastern European cities has generally strengthened relative to the Eurozone in recent years. Now international companies organize their activities in these countries, thus increasing the demand for quality housing," Alec Smith said.


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