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).

Knowledge Bites: Price, size, emissions, material deprivation - Housing in Luxembourg compared to EU

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%