Average mortgage payments in Luxembourg are 51.1% higher than average rent - while both rent and house prices are the highest in the OECD group of developed countries.

The so-called price gap between house prices and rents is an indicator of how expensive it is to purchase a house with a standard mortgage versus average monthly rent.

According to research carried out by price comparison site Compare The Market, the average rent in Luxembourg for a three bedroom house is $3,017 (€2,634) per month, while the equivalent monthly mortgage payment is $4,558 (€3,980).

Second-placed Latvia, meanwhile, has a price gap of 42.5%, but both rent prices ($582 or €508 per month) and mortgages ($830 or €725 per month) are much lower.

In two OECD countries, average mortgage payments are lower than rents. Finland's price gap is -2.1%, with average mortgage payments of $1,258 (€1,098) working out slightly less than average rent of $1,285 (€1,122). Italy also enjoys cheaper mortgage than rent prices, with the price gap calculated at -0.9%.

Highest rent and mortgage prices

At around $4,558 (€3,980) a month, Luxembourg's average monthly mortgage payments are far higher than the OECD average. Ranked in this way, second-placed Switzerland is at a far more affordable $2,961 (€2,586) per month.

Meanwhile, Luxembourg's average is an eye-popping ten times higher than bottom-placed Turkey's, at $441 (€385) per month.

Rents are similarly staggering, with the average three-bed costing $3,017 (€2,634) in the Grand Duchy, compared to $2,599 (€2,269) in second-placed Switzerland. Turkey is again the lowest in the OECD, at $372 (€324) per month.

How about something more affordable and close by? Both average rents and mortgages are much lower in the Grand Duchy's neighbours - with Belgium proving on average the most affordable. Monthly rents there are $1,224 (€1,069) and mortgage payments $1,384 (€1,209).

Top 10 biggest price gaps

 Rank  Country  Average rent $ (3 bedrooms) Mortgage monthly payment $ (est.)  Difference between house prices and rent 
 1  Luxembourg  3,017  4,558  51.1%
 2  Latvia  582  830  42.5%
 3  Slovakia  771  1,098  42.3%
 4  Portugal  1,005  1,419  41.2%
 5  Hungary  583  822  40.9%
 6  Russia  746  1,045  40.1%
 7  Czech Republic  861  1,205  40.0%
 8  New Zealand  1,656  2,234  34.9%
 9  Germany  1,414  1,887  33.5%
 10  Canada  1,597  2,118  32.6%