London is the most expensive place in Europe for professionals to rent a home and almost four times costlier than any other city in the UK, new research ECA International shows.
Despite Brexit London is still popular for expats of all but it comes at a price with the average rent coming in at 5,398 GBP per month compared with 1,427 GBP per month in other British cities.
Dublin rental accommodation has entered the top 10 most expensive in Europe for the first time at 2,688 GBP per month and overall the biggest rent increases in the UK have been in Manchester, Edinburgh and Glasgow which the firm says is due to high demand.
The second most expensive city to rent in Europe, and therefor the most expensive for British Expats, is Moscow, followed by Zurich, Geneva and Istanbul while Hong Kong is the most expensive in the world.
ECA has been conducting research into accommodation costs for international executives for more than 20 years.
Although London rent for professionals remains the most expensive in Europe, the drop-in value of the Pound has caused London to drop a position in global terms, moving down to fifth, overtaken by Port Moresby in Papua New Guinea.
ECA explained that changes to stamp duty, the property tax paid when buying a home, in 2016 led to a rush from landlords to purchase buy to let properties, which increased the supply of rental accommodation across prime areas of London.
The last 10 years have seen a significant turnaround in the fortunes of Dublin’s residential rental market and similarly, Eastern European cities have also seen sharp increases in rental prices by almost 2,000 GBP per month with both Prague and Warsaw climbing over 10 places in the rankings compared with last year.
With a high population density and a consistently limited supply of property, the average rent in Hong Kong continues to remain more expensive than in other high profile Asian cities and in other major cities around the world.
Rents in Hong Kong have risen slightly in the past 12 months but despite the high rental costs in Hong Kong, rent for the type of accommodation featured in the research remains lower than it was in 2012.
Accommodation costs in many locations in China have increased in the past 12 months. Shanghai is the most expensive location in mainland China, and the third most expensive location in the Asia region.
In the United States New York remains the most expensive place for expat rental, despite rental prices falling in the last year. This contrasts with other popular US cities such as San Francisco and Miami where rents, and their place in the cost rankings, have continued to rise.