Newly released research by international rental marketplace, Spotahome, has revealed that Lisbon, Valletta and Dublin rank higher than London for relative rental unaffordability.
The firm looked at the average net salary available in the capital, as well as the average cost of renting a one-bedroom apartment, highlighting what percentage of salary is required to cover the cost of renting before comparing it to other capital cities across the 27 European Union member states to see where was the most and least affordable.
Good news (ish) for London
The average rent in Lisbon is currently £799 per month and while this is some £965 more affordable when compared to London, the average net salary is just £988 per month to that of £2,590 in the capital. As a result, renters in Lisbon are spending a huge 80.9% of their salary on the cost of renting each month, making it the most expensive capital city for renting across the UK and EU.
With an average rent of £748 per month accounting for 75.9% of the average salary (£986), Malta’s capital Valletta is the second least affordable when it comes to the rent to income ratio.
Closer to home, Dublin ranks third with 69.9% of the average salary required to cover the cost of renting.
Prague, Warsaw, Rome and Budapest were also home to rent to income ratios of over 60%.
With an average rent of just £732 and an impressive average wage of £2,038, Brussels is the most affordable EU capital for European renters, with only 35.9% of income required to cover the cost of a one-bedroom rental property on a monthly basis.
James Kirimy, GM for Spotahome UK and Ireland, commented: “London is often considered the most expensive place to rent across the UK and Europe and for a good reason. The city is home to the highest average rental costs of all capital cities in the UK and the European Union. However, it’s also home to one of the highest average salaries and this higher earning potential means that while still expensive, it isn’t the most unaffordable city to rent in.
Of course, the trick to relocating to any major city is a bit of local knowledge, and while London rents are high, there are plenty of pockets where you can rent for less while still earning a great wage, reducing the percentage of income spent on putting a roof over your head in the process.
At Spotahome we specialise in helping renters from all over the world relocate to new cities, and we know that rental cost is often their primary concern.
Thanks to the advancements in technology and platforms such as Spotahome, renters can now find a suitable property at a reasonable price point and secure it with just a few clicks of a mouse before they even arrive. This new way of renting removes the painstaking process of residing in a hotel or on a friend’s sofa for the first few months and traipsing between viewings of an evening trying to find a place of their own.”
