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Rental cost for property in London is the most expensive in Europe, and the fourth most expensive in the world, according to new research.
Although rental cost decreased in central London (zone one) this year, rent in outer London remained stable. London maintains its number one position in the top five most expensive for rental accommodation in Europe, followed by Moscow, Zurich, Geneva and Dublin.
The average rental cost in London for a three-bed home is £5,187 according to the latest annual research published by global mobility experts, ECA International (ECA). Despite uncertainty around Brexit, demand for rental accommodation in London remains steady as young professionals are increasingly unable to buy within the M25.
ECA’s annual rental accommodation report analyses the rental prices for an unfurnished, mid-market, three-bedroom home in areas commonly inhabited by expatriates. According to this year’s ECA housing report, the average rental cost in outer London is on the rise at £4,000 per month, whereas the average rent in central London has fallen to £7,000 for a three-bedroom apartment.
Alec Smith, Accommodation Services Manager at ECA International, said: A polarisation of rent changes was observed between properties in central and outer London since the previous year. Rents fell in prime neighbourhoods in London travel zone one, with salaries for top jobs largely stagnant and demand waning. Rents in outer London were more stable but are anticipated to increase with London property purchases growing ever more out of the reach of many Londoners.’
Outside the capital, Manchester continues to have the most expensive rental cost for accommodation in the UK outside of London and has re-entered the top 120 most expensive in the world (119th) this year. Ranking 30th in Europe, average rent in Manchester for a three-bedroom home is now £1,844 per month, £54 more expensive than last year. Birmingham has seen the largest rental cost increase in the UK at a staggering £110 per month, and is now the 36th most expensive city in Europe to rent in.
Smith continued: ‘Central Manchester has seen a large population growth in recent years and is now widely considered the second most important city in the UK economically. Numerous companies have relocated to the city, fuelling demand for rented accommodation, particularly in central areas.’
Dublin rental cost has risen hugely to become the 26th most expensive city in the world and fifth most expensive in Europe to rent a three-bedroom, unfurnished home. The Irish capital has risen by a staggering 35 places since last year’s report by ECA. It reveals the average rental price in Dublin has risen to €3,406pm an increase of €277.
Smith said: ‘The past 10 years have seen a significant turnaround in the fortunes of Dublin’s residential rental market. The global financial crisis exposed a property bubble in the Irish capital and rents have increased significantly with each subsequent year of recovery. The cost of renting has also been affected by elevated demand from international companies relocating staff while looking to take advantage of Ireland’s low corporate tax rate.’