The cost of renting a home in Amsterdam has reached record levels, with a rise of 5.6% in the previous quarter, according to research by rental agency Pararius.

Tenants now pay an average of €19.31 per square metre, topping the previous record of €18.97 which dates from the third quarter of 2008.

On average, prices in the Netherlands have dipped by a marginal 0.1% to €12.42 per square metre.

‘The high cost of buying property in Amsterdam is the main cause,’ says Pararius director Jasper de Groot. ‘Just 32% of Amsterdam houses are owned privately, compared with 60% in the country as a whole.’

In addition, the shortage of houses in Amsterdam with rents of between €700 and €1,000 and the large number of expats in the capital are also pushing up rents, De Groot said.

The average price of a rental apartment on the Pararius housing platform is now €1,263.