Brexit good news: leave Lon­don and pay far less rent

Irish Independent - Business Week - - COMMERCIAL PROPERTY - An­dre Tar­tar and Wei Lu

BANKERS and others who must re­lo­cate in the wake of Brexit may miss Lon­don, but not its rents. In cities in­clud­ing Frank­furt, Paris and Dublin, their hous­ing costs could be slashed as much as 60pc.

Lon­don is the least­afford­able ma­jor city in West­ern Eu­rope, ac­cord­ing to the Bloomberg Global City Hous­ing Af­ford­abil­ity In­dex, with av­er­age monthly rent and mort­gage pay­ments equalling 135pc of monthly net in­come.

Prices have been el­e­vated by the con­cen­tra­tion of high-pay­ing jobs in fi­nance and wealthy for­eign­prop­erty hunters. In Paris, the cost is 84pc of av­er­age net in­come. In Dublin and Am­s­ter­dam, it’s about 70pc, and in Frank­furt, Zurich and Brus­sels, it’s be­tween 50pc and 55pc.

The Bloomberg in­dex cal­cu­lates the af­ford­abil­ity of rent­ing a three-bed­room res­i­dence or buy­ing a 1,000-square-foot home in city cen­tres and sub­urbs across 105 global and re­gional fi­nan­cial cen­tres. Rank­ings are based on sel­f­re­ported data, in­clud­ing net salary and mort­gage in­ter­est rates, com­piled by num­beo.com, an on­line database of city and coun­try sta­tis­tics.

If prospec­tive pur­chasers in Lon­don al­lo­cated half their af­ter-tax in­come to hous­ing, they’d need min­i­mum take-home pay of $11,764 a month to buy in cen­tral Lon­don, as­sum­ing they put 20pc down and have a 30-year fixed-rate loan. A per­son buy­ing in Paris could af­ford a sim­i­lar flat with take-home pay of $6,050 a month. The min­i­mum in Frank­furt would be $3,520.

Ma­jor global fi­nan­cial in­sti­tu­tions have al­ready an­nounced they are mov­ing more than 10,000 Lon­don­based jobs to other parts of Eu­rope. So far, Frank­furt is the top des­ti­na­tion.

(Bloomberg)

Rent­ing in Dublin is rel­a­tively cheap com­pared to Lon­don

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