Arthur have studied UK and European locations on a rental budget to see how much variation occurs.
It is widely known that in the UK and Europe there are large discrepancies between regions and rental prices. In this article, Arthur take a look at how far £1,000 PCM rent can get tenants in a variety of regions. This figure is roughly what a tenant could be assumed to afford when they wish to rent their first property. £1,000 of monthly rent assumes that a solo tenant would be earning an income of £40,000, based on spending roughly 30-40% of their post-tax income on rent.
Unsurprisingly, we were unable to find any properties which were available for our rental budget without having to share the property with other tenants. Whilst this may be a great location in the centre of Marylebone, it means that the tenants have to accept a massive downsize in private accommodation and be willing to share the property with up to 4 other tenants.
As we venture further away from the premium prices in central London, the £1,000 rental budget stretches further and allows tenants to rent accommodation privately. A highlight is this one bedroom studio flat based near Streatham Common, South West London.
One of London’s largest and most affordable commuter towns, many of the population undertake the commute into London a daily basis. A monthly travel card costs an extra £280 and takes 30-40 minutes on National Rail, but the added size of a property could be worth the trade-off. In Luton, our £1,000 rental budget can enable a tenant to have a newly built and furnished 2-bedroom townhouse with an open plan kitchen and patio/lawn, all within a private gated estate.
Rated as the most affordable city to live in England, the North Western city has a rich history as the home to the House of Lancaster. The rating of most affordable city in England seems to be true – our budget does extremely well here. The £1,000 PCM gets us a Grade II listed conversion mews house with 3 bedrooms, including an en-suite master bedroom. It is furnished to a high standard and the history of the property is evident, with its large and spacious entrance hall. This property has a plethora of positives and just goes to show that a small budget in the capital can stretch astoundingly far in other beautiful cities.
As we venture up to the Northern regions of the UK, it becomes irrefutable that the budget stretches much further than in the South. In Dundee, our rental budget of £1,000 PCM now allows the potential tenant to have a detached property with 4 bedrooms and its own driveway. The master bedroom has an en-suite bathroom and the house is renovated to a modern standard.
Brits have sought properties in Spain for decades due to its affordable property market and relaxing lifestyle of sun, sea, and sand. Even in the tourist haven of Marbella, we managed to find a townhouse within our rental budget. This lovely family home has 5 bedrooms 3 bathrooms, and is presented to a high finish. Moreover, it has overlooks beautifully maintained communal gardens and has access to a communal pool. No wonder so many Brits continue to flock to Spain with prices like these.
Home to of the most beautiful and cultural capitals in Europe, Prague is one of the most popular tourist destinations. Nonetheless, our rental budget does surprisingly well in the Central European city. Our budget manages to get us an extremely spacious (700sq foot) apartment that is finished to and a very high standard. There is an office and a living room with a fireplace and access to a large private terrace overlooking the city. This price would entice anyone to come and live in Prague.
Time for to move away from London?
As the study shows, London offers the least value for money out of anywhere in both the UK and Europe. Moreover, a study by Jones Lang Lasalle (JLL) has shown that over the past few years London rental rate rises have averaged 8% growth, whereas most of Europe has seen rental growth rates closer to 2%. Some cities, such as Barcelona, Paris, and Copenhagen have even experienced negative rental rate changes. Perhaps it is time to consider a relocation into other cities!
Next week, Arthur will continue the study using our rental budget in countries outside of Europe. Keep following Arthur on social media to stay updated!