More bad news for renters in London as new research reveals that the city is home to rental price premium of 133%, more than any other capital city in Europe.
The research, from Spotahome, looked at the cost of renting in each city across the EU and UK and how it compared to the cost of renting in the wider nation, to find which cities were home to the highest capital city rental premium.
On average, renting in a capital city will set you back £794 per month, 35% more than renting across the wider nation (£586).
However, in London, this capital city rental premium is as high as 133%, with tenants paying £1,765 per month compared to the broader UK cost of £757.
Paris is home to the second-highest capital city rental price premium, with tenants paying out £1,060 a month compared to the wider cost of £613 in France; a 73% difference.
Stockholm is home to the third-highest capital rental price premium, with the average monthly rent in the city 59% higher than the current average across Sweden as a whole.
Rome (52%), Amsterdam (47%), Madrid (45%), Lisbon (42%), Copenhagen (41%), Bucharest (39%), and Prague (37%) also rank amongst the highest capital city rental price premiums.
In contrast, the Cypriot capital of Nicosia is the only city to see a lower rental price than the country as a whole. At £461 per month, the city is -9% more affordable than the average cost of renting across Cyprus (£506).
Although still more expensive than the wider country, Luxembourg City (3%), Riga (14%), Brussels (16%) and Zagreb (17%) are home to some of the lower capital city rental premiums.
Nadia Butt, UK and Ireland Country Manager of Spotahome said, “Opting to rent within almost any capital city is always going to come at a higher cost due to the strong demand for property and the often limited availability of homes. This is primarily driven by those moving for work as these cities are generally home to a higher level of job opportunities, as well as being some of the best places in the world to live.
“The good news is that while it may cost more to rent, the earnings on offer are higher, and this helps to address the balance. While London, in particular, is home to the highest rental premium when compared to the wider nation, our previous research has found that the cost of living has reduced as a result of consistent wage growth.
“So when you consider the abundance of opportunities to further your career and the financial rewards for doing so, these cities are well worth the higher rental prices.”