Jan 19, 2017
Renting a flat in a prime section of London costs an average of four times as much as a flat in other European cities. A three bedroom unit typically costs a renter £5,398 a month, putting London into the number one spot for ‘most expensive European cities to rent for the third year in a row.
Property Rentals and Brexit
Alec Smith, an employee of the analytics firm ECA International, states that there is a “large amount of uncertainty in the financial sector in light of the Brexit vote”. Britain is scheduled to exit from the EU in March of 2019. Because Brexit may change financial regulations in London, the rental scene could be very different in the years to come.
But for now, rental units are in high demand and buy to let landlords can command higher rents in the city than in other areas of Europe. Rents in London are twice what they are in Paris. On average, London rentals cost two and a half times that of other European cities.
The initial move to leave the EU did affect London’s global standing, possibly due to the drop in the value of the pound after the vote. The city fell slightly in ranking as far as most expensive cities to live in globally. Ahead of London on the ranking of most expensive cities for housing is San Francisco, USA, Melbourne, Australia, and Hong Kong, China.
As far as European cities go, the second most expensive city to rent in is Moscow, and the third city on the list is Zurich. London has been the costliest city in Europe for rentals for the past three years. The demand is highest in prime areas. These areas are preferred due to several factors including safety, convenience, and popularity among expatriates.
Renters also judge prime real estate by how much time it takes to commute to work, and what accommodations are nearby. The most coveted rentals in London are the ones that provide convenience and a wide variety of stores and restaurants nearby.