How European cities’ rent prices compare to London and Manchester

London ranks as one of Europe’s most expensive cities to rent in, with Dublin topping the list as the single costliest followed by Paris and Oslo, according to research.

Inner London came fourth in a list of the continent’s most expensive cities in which to rent, with average rent costing €24.40 (£20.99) per square metre a month, while those living in Greater London paid an average of €19.50 (£16.72) /sq m, according to research from Deloitte.

This compared with €32.80 (£28.13) /sq m in Dublin, and €28.50 (£24.48) /sq m in Paris, and €28.00 (£24.05) /sq m in Oslo even after prices fell by 0.5 per cent in 2022.

According to the survey of 66 European cities for rent, which excluded some such as Zurich and Geneva which are known to be among the most expensive, the average European city renter pays an average of €14.38 (£12.36) /sq m, meaning Dubliners are paying over double the European average while inner Londoners are paying nearly double.

The only two European cities that recorded an annual fall in rental prices were Paris, which fell by 0.5 per cent, and Manchester, which saw rents fall by 9.7 per cent, to an average of €10.70 (£9.20) / sq m.

Across 66 European cities, Dublin, Paris, Oslo, Inner London and Amsterdam were the costliest for rent (Image: inews)

Cities from Germany, Belgium, Denmark and the Netherlands were all cheaper to live in than London.

Kate Henderson, chief executive of the National Housing Federation, blamed London’s “soaring private rents” on the UK’s “broken housing system, caused by decades of under-investment in affordable housing”.

Ms Henderson told i: “Alongside this, successive governments have focused on short-term and piecemeal approaches to housing policy, with various policies that focus on increasing home ownership, exacerbating the problem by increasing housing prices and further reducing social housing.

“Those no longer able to access social housing or buy a home are flooding into the private rented sector, creating more demand, and pushing up private rents even further.”

The Deloitte research found that Ireland and Norway were the two top countries whose cities made up the upper echelon of renting prices, with Dublin, Galway, Cork, Oslo, Trondheim and Bergen all asking for more than the €20 (£17.80) /sq m mark.

Colin Richardson, head of Research, at CBRE Ireland, put Dublin’s inflated rent prices down to the housing market’s inability to keep up with a growing economy and increasing population.

Mr Richardson told i: “Over the last 10 years, Dublin has benefited from a booming economy and employment market, as well as significant population growth. However, the new homes construction and development sector hasn’t kept pace with this growth, fuelling a mass undersupply of rental homes in Dublin.”

He said that 34,000 homes “likely to be delivered in Dublin” should alleviate the “supply and demand imbalance” adding that the current 2 per cent rental increase cap per annum “is addressing affordability”.

At the other end of the scale, the research found that Bulgaria had the lowest average rental prices, with renters in Burgas, eastern Bulgaria, paying an average of €3.10 (£2.66) /sq m

The highest annual change in the prices of rented properties was recorded in Slovenian cities including Maribor which increased by 66.5 per cent, Kranj by 40.8 per cent and Ljubljana, which saw a 37.7 per cent rent increase.

Paul Tostevin, from Savills World Research, told i that “limited supply” and “strong demand from domestic renters, international tenants moving for work and study, and would-be-purchasers” turning to the rental market amid inflated interest rates had changed Europe’s rental market.

“Looking ahead, we expect rents to continue to outperform capital values for the remainder of 2023 and in the medium term, as supply continues to remain scarce in the face of growing demand, with positive rental growth in the majority of cities … for the remainder of 2023,” Mr Tostevin said.

“Supply is expected to remain tight in many world cities. Several factors, including rising construction costs, development challenges, and increasing debt costs, contribute to the limited availability of prime inventory and the upward pressure on rental prices.”