Average rents in London reached a record quarterly high of £2,694 (€3,220) a month, a 2.5% increase on last year's figure, a new report has found.

The data, from UK property portal Rightmove, is based on an analysis of more than half a million properties advertised for rent on the company's website between July and September 2024.

The average price calculation is based on the asking rents for all properties, from bedsits and one-bedroom flats to multi-room houses.

Taking these variables into account, London is still one of the most expensive places to live, with rents outstripping those in comparable European countries.

Rightmove calculated the average rent for the more desirable inner London areas to be an eye-watering £3,175 (€3,795), while outer London prices were a more modest £2,341 (€2,797).

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Rightmove's Director of Property Science, Tim Bannister, told Euronews Business that London's staggeringly high rents are the result of a number of economic factors.

"Many landlords are facing higher costs in the form of mortgage rates, maintenance, and regulatory compliance. The increase in average advertised rents also reflects the challenges renters are facing, as they're being asked to pay more in a market that's still highly competitive, despite some improvements in supply.

"As we approach the Autumn Budget, many landlords are evaluating their future in the market, and some may choose to exit the market due to the pressures they face," he said.

How do London rents compare with European rivals?

German data analytics company Statista examined the rental costs of 23 leading European cities for the first quarter of the year to determine the most expensive places to rent.

Cities including Milan, Paris, Amsterdam, Berlin, Lisbon, Helsinki, Athens, and Rome (but not London) were analysed to identify just how much it would cost to rent a one-bedroom, furnished flat.

After crunching the numbers, Statista researchers identified Amsterdam as the priciest postcode to rent a one-bedroomed pied-à-terre.

With rents topping €2,275 a month, the Dutch city, although pricier than its continental neighbours, was almost €1,000 a month cheaper than renting in London.

Cities of high culture and romance among the most expensive

After Amsterdam, Rome and Paris were the most expensive places to rent among the nations polled. Renters would have to fork out €2,000 a month to live in the Eternal City, while those wishing to follow in the footsteps of "Emily in Paris" will need to find €1,862 to rub shoulders with Parisian fashionistas.

Dutch cities Rotterdam, Utrecht, and The Hague were all placed in the top 10 most expensive places to rent. Rotterdam, with charges of €1,795 a month, was placed fourth on the list, closely followed by The Hague in fifth position with monthly rents of €1,790.

Utrecht was pipped to the sixth position by Munich, with the German city's rental cost of €1,770 squeezing ahead of its Dutch rival's €1,746 a month fee.

Historic Italian cities Bologna and Florence were placed towards the top of the list in 11th and 12th position, with rents coming in at €1,600 a month, the same as Prague.

European capitals, Madrid and Berlin, were considerably cheaper than London and Amsterdam, with rents in the Spanish city averaging €1,494 and €1,500 in Germany's capital.

Best value cities charged around €1,000

Budapest, Athens, and Turin were the most affordable places to rent among the 23 cities polled. Budapest took the title for the cheapest rents, with monthly fees just dipping below the €1,000 threshold.

Renters in Hungary would have to part with €950 a month to live in the country's capital.

Athens, the Greek capital on the shores of the Mediterranean, charges renters €1,000 to enjoy its many delights, while the Italian city of Turin isn't far behind with an average rent of €1,100.

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