London named top 'city of opportunity' in the world: but falls to 22nd place for rental affordability

London is classed the number one 'city of opportunity' in the world, but falls to 22nd position once rental affordability is taken into account.

A new report, which aims to find the best cities in the world for renters, examines the average wages and rents of households in the world's 30 best cities of opportunity.

In the PwC analysis — which looks at such indicators as infrastructure, intellectual capital, sustainability and ease of doing business — London takes prime position.

Singapore, Toronto, Paris and Amsterdam complete the top five. New York ranks in sixth place, and Sydney tenth.

However, once the team at Rentcafé applies their income-to-rent ratio to the data, London drops 21 places.

According to the site, London has a 40 per cent rent-to-income ratio, based on a household of two people earning £44,500 and paying an average of £1,500 in rent.

This is a story Generation Rent is only too familiar with, with a recent report revealing that single Londoners are paying 50 per cent or more of their wages on rent.

World's best — and cheapest — cities for renters

One of the major benefits of renting is the freedom to move home frequently, so where should renters look to for the best combination of both opportunity and affordability?

When both factors are considered, Kuala Lumpar, the capital of Malaysia, shoots from 20th position in the PwC rating, to first, making it the most affordable rental city of opportunity, with a 20 per cent rent-to-income ratio. It also has the strongest job growth of emerging (as oppose to established) cities and some of the lowest tax rates.

Russia's Moscow and Johannesburg in South Africa take second and third position respectively, with similar affordability ratings for renters.

Sydney makes the top 10 in both ranking systems, climbing one spot to ninth position when the 29 per cent rent-to income ratio is applied to its opportunity ranking.

The Australian city is classed as one of the more "mellow" cities of the top 30 and scores one of the highest for sustainability and the natural environment.

Although globally New York "remains the symbol of the gateway city" it has been on a downward trend in the PwC report over the past few years and this year takes sixth place.

However, Manhattan drops to second-to last place — behind only Mexico City — as one of least affordable cities of opportunity in the world, with rents commanding 60 per cent of average household incomes.

"In other words, in an average family with two earners, one of them works only to pay the rent, and it’s still not enough," says author Balazs Szekely.

Nevertheless, as renters in London and New York know, rental costs are only one factor when weighing up the benefits of living in the employment and cultural hubs that make up the best cities in the world.

Scroll through the gallery above to find the top 10 cities of opportunity, ranked in order of rent from cheapest to most expensive.