How do rents compare globally, and what landlords need to know

Renting in the UK is often described as among the most expensive in the world, but that headline only holds up in parts. Measured by price alone, UK rents are high; measured by affordability, the share of a tenant’s income that rent consumes, the UK sits in the middle of the developed world, more stretched than Germany but far easier than Hong Kong or New Zealand. For landlords, the more useful question is not whether UK rents are high in absolute terms, but what the world’s more and less stable rental systems can teach us about holding good tenants and steady income. This article compares UK rents internationally on affordability rather than price, and draws out the practical lessons. The figures are illustrative and drawn from international housing data current to early 2026.

Why this matters to landlords

When we set or review a rent, we are weighing several things at once: whether the tenant can afford it, whether a higher figure invites longer void periods, whether we are pricing fairly and competitively for the area, and what yield we realistically need. Looking globally helps because it shows what is normal elsewhere, what structural pressures push rents up or hold them down, and how different systems balance landlord returns against tenant security. The pattern that emerges is consistent: the markets that treat tenants fairly tend to reward landlords with stability.

How to compare rents fairly

Comparing raw rents across countries is misleading, because a high rent is not a problem where incomes are high too. Two measures together give a fairer picture. The first is rent as a share of disposable income, which is the clearest gauge of affordability and therefore of arrears and turnover risk. The second is the average rent in local currency, which is useful for benchmarking actual cost. Affordability is the one that matters most to a landlord, because when it breaks down, tenants fall into arrears, move more often, or campaign for the regulation that follows.

United Kingdom: high prices, mixed value

In the UK, the average tenant spends roughly 30 to 40 per cent of disposable income on rent, and in London that figure regularly passes 50 per cent for single or lower-income households. Average rents sit well above £1,200 a month nationally and above £2,000 in London. In principle that leaves room for rents to rise; in practice many tenants are already at the limit, which is why tenancies are lengthening and rent increases increasingly need to be justified with real improvements. Longer tenancies are good news for any landlord carrying the cost of voids between lets. The lesson is to know your local affordability ceiling and to weigh tenant longevity against squeezing the top rate, because the UK’s underlying problem is a long-term shortage of supply against demand, not a shortage of pricing ambition.

Germany: stable income, strong regulation

More than half of Germans rent, yet affordability stays comfortable at around 25 to 27 per cent of disposable income, helped by long leases, capped increases and strong security of tenure. Despite regulation that landlords elsewhere might fear, many German landlords enjoy consistent income with low voids and little churn. The lesson is that long-term tenants create long-term value, that fairness and stability reduce costly turnover, and that stronger tenant protections do not automatically mean weaker returns. The UK’s move to assured periodic tenancies under the Renters’ Rights Act pushes us closer to the German model than many landlords yet realise.

France: moderate affordability, rising demand

French renters spend about 25 to 30 per cent of disposable income on rent. Paris is expensive, but the rest of the country is far more modest, and France has experimented with city rent controls alongside multi-year tenancy agreements. Investor appetite is cautious, but long-term landlords get predictable returns. The lesson is that well-balanced regulated markets can work, that urban and rural markets need different pricing strategies, and that government intervention becomes more likely wherever affordability is strained.

Netherlands: high prices, small spaces

Dutch renters spend roughly 28 to 35 per cent of income but get less space for it; in Amsterdam, even modest flats can cost well over €1,500 a month. Social housing is tightly controlled while private rentals have been largely unregulated, though proposed legislation is set to extend caps. The lesson is that high prices do not guarantee high yields once costs and tenant expectations rise, that rent must stay aligned with quality and space, and that regulation can shift quickly in a tight market.

Australia: high rents, low availability

In Sydney and Melbourne, renters now spend 35 to 40 per cent of income on rent, weekly rents are steep, and vacancy rates sit near record lows. For landlords it has been a boom, but one tempered by higher mortgage costs, strict tenancy law and growing political scrutiny. The lesson is that strong demand does not remove risk, that attractive yields can be eroded by rising costs, and that negative public sentiment about landlords tends to shape the next round of legislation.

New Zealand: small country, big pressures

New Zealand tenants now spend around 40 to 45 per cent of income on rent, with lower average salaries stretching affordability further, while landlords face tightening rules on insulation, notice periods and rent increases. The lesson is blunt: when affordability collapses, so does public support for small landlords, so investing in quality pays off in stability and compliance, and landlords who take the long view weather change better.

Singapore: high cost, high income

Singapore’s private rental market is costly, but incomes are high and demand is steady. Because most Singaporeans own their homes, renters are largely expatriates and short-term professionals, and tenancies tend to be fixed-term and businesslike. The lesson is that niche markets such as executive lets can support higher rents and greater certainty where an employer pays, that they carry turnover risk, and that clarity and professionalism make every tenancy smoother.

Hong Kong: a cautionary tale

Hong Kong is the least affordable place to rent in the developed world, with tenants routinely spending more than half their income and average flats exceeding the equivalent of £2,000 a month. Yet high rents have not guaranteed returns; uncertainty has produced real voids and falling yields in places. The lesson is that excessive rents eventually meet pushback, that resilience rests on trust and value, and that fair, stable tenancies tend to beat short-term profit maximisation.

United States: huge variation, tightening affordability

American renters spend 30 to 35 per cent of income on average, rising above 45 per cent in New York or San Francisco, with rents ranging from modest in small cities to very high in the hotspots. Leases are often short, turnover is high, and tenant protections vary widely by state, giving landlords flexibility but more risk. The lesson is that flexibility brings volatility and admin cost, that rent rises must be balanced against retention, and that adding visible value is what justifies a rent review.

So where does the UK sit?

On affordability, the UK sits in the middle of the global spectrum: dearer than Germany, far easier than Hong Kong or New Zealand. What sets it apart is a growing sense among tenants that they are not getting value for the money, particularly on security, space and long-term stability. The Renters’ Rights Act, in force from 1 May 2026, is the first significant attempt in a decade to close that security gap. For landlords the implication is clear: when tenants are under pressure, so are we, through missed rent, faster turnover and the regulation that pressure invites. Our UK polling underlines this; most landlords told August they expected to raise rents without Budget relief, as set out in our Autumn Budget findings.

Final thoughts

Four things carry across every market. Know your market, because affordability is both a social issue and a direct risk to your tenancies. Start with the right tenant, since robust tenant referencing is the cheapest and biggest lever on retention. Learn from abroad, because the fairer, more secure systems tend to deliver more stable income. And focus on long-term value, because a tenant who stays five years is worth far more than a run of top-paying short-stayers once voids and redecoration are counted. Staying close to the numbers helps, and you can track rent and spot arrears early so pressure shows up before it becomes a problem. If you want one place to manage lettings for the long term, you can start for free.

Disclaimer: This article is a guide and not intended to be relied upon as legal or professional advice, or as a substitute for it. August does not accept any liability for any errors, omissions or misstatements contained in this article. Always speak to a suitably qualified professional if you require specific advice or information.