UK ranks as one of Europe’s most affordable rental markets

The latest research from the international rental marketplace, Spotahome, has revealed which pocket of the European rental market currently offers the most affordable option where both rental price and the average net income available are concerned.

Spotahome analysed the average net monthly income and the average rental cost of living in each EU nation, as well as the UK, to see which ranked as the most affordable where the percentage of income required to cover rent is concerned.

The research shows that across these 28 nations, the average cost of renting accounts for 35.8% of the average net monthly income.

Despite the UK’s reputation for high rental prices, a healthy level of available income means it ranks within the top five nations for rental affordability.

Currently, the average monthly net income sits at £2,603 in the UK, one of the highest when compared to the 27 EU nations. With the average cost of renting in UK cities currently at £744, just 28.6% of monthly earnings are required to get by in the UK rental market.

Finland is marginally more affordable than the UK from a rental point of view, with 28.5% of the average monthly income required to cover the cost of renting.

Germany (28.3%) and Austria (27%) also rank better than the UK for rental affordability.

However, for those planning a post-pandemic escape to live and work in another country, Greece could be the best choice. The cost of renting in a Greek city is an incredibly affordable £294 per month. While the average monthly net income is far lower than the likes of the UK at £1,154, Greek renters are spending just 25.5% of their monthly income on the cost of renting.

In contrast, Slovakia ranks as the least affordable EU rental locations, with tenants required to spend 57.1% of their net monthly income on rental outgoings. Other countries where more than half of a tenant’s monthly income is spent on rent include Malta, Lithuania, Poland, Czech Republic, Portugal, Bulgaria and Croatia.

 Spotahome Head of Data and Analytics, Jorge Alonso, commented:

 “The overall cost of renting will, of course, dictate rental affordability to a large extent. However, this level of affordability is also influenced by the available earnings in a given area.

When setting out to rent in any city, research is key to ensuring a good balance between your rental property and your quality of life. Arming yourself with a realistic breakdown of your earnings, the cost of living in an area and setting a maximum rental budget is a good place to begin when starting your search.

While an overall look at affordability levels will give you a good indicator of where you might be able to afford to rent, it’s important to remember that the rental market is a diverse one. Even in the most expensive rental cities, you should be able to find far more affordable pockets to help increase your levels of disposable income. Even if it does mean adjusting your expectations slightly where location or property size are concerned.”