How do rents compare globally and what landlords need to know
August 27, 2025
With summer in full swing and many of us finally finding a moment to step back and have a holiday, it’s a fitting time to take a broader look at where the UK rental market stands on the global stage.
As small landlords in the UK, we’ve seen no shortage of headlines suggesting that tenants here are paying a fortune in rent. And to be fair, many of us have felt that tension ourselves balancing rising costs, mortgage rates, and maintenance call-outs with concerns over tenant affordability, fair pricing, and retention.
But how expensive is renting in the UK compared to the rest of the world? Are our rents really out of step, or is the situation more nuanced?
Across the world, an estimated 1.2 billion people rent their homes, from modest bedsits to luxury apartments and family houses. Yet the cost and the value of that rent varies dramatically from country to country. Looking at places like Germany, France, the US, Australia, and Singapore can give us some useful context and, in some cases, practical lessons we might apply to how we run our properties.
In this article, we’ll explore how rent in the UK stacks up internationally based not just on price, but on affordability. We’ll also look at what we, as landlords, might take away from the world’s more (and less) tenant-friendly rental systems.
Why this matters to landlords
When we set rent levels or review them annually, we’re not just thinking about the market rate, we’re also thinking about:
Can our tenants afford this?
Will a higher rent mean more void periods?
Are we pricing fairly and competitively for the local area?
What yield do we realistically need?
Looking globally helps us understand what’s normal elsewhere, where the pressures are, and what structural factors are pushing rents up or keeping them under control. It also shows us how different rental systems treat landlords and tenants and where the UK sits in terms of support, stability, and long-term value.
How to compare fairly
To compare rents across countries, we look at two main things:
Rent as a percentage of disposable income – This tells us how much of a tenant’s take-home pay is spent on rent, and is one of the best ways to judge affordability.
Average rental prices (city and national level) – This shows us the actual cost in currency terms, which is useful for benchmarking.
For landlords, both are useful. High rents may not be a problem if incomes are high too. But if affordability is stretched, tenants are more likely to struggle, fall into arrears, or move frequently.
Let’s take a look at the data and what it tells us.
United Kingdom - High prices, mixed value
In the UK, the average tenant spends 30–40% of their disposable income on rent. In London, that figure regularly pushes over 50% for single tenants or low-income households.
As of 2025, average rent across the UK is around £1,260 per month, with London pushing above £2,000. Outside the capital, things are more manageable, but demand often outstrips supply, particularly for affordable family-sized homes.
For landlords, this means rents have room to rise in theory, but many tenants are already at breaking point. We’re seeing more people staying put longer (particularly post COIVD), fewer moving households, and increased pressure to justify rent increases with real improvements.
What we can learn:
Know your local area affordability limits.
Consider balancing tenant longevity and rent stability with attaining top rates.
The real challenge in the UK is a long term lack of housing supply against demand.
Germany - Stable income, strong regulation
In Germany, more than half the population rents, and yet affordability remains high. Renters typically spend 25–27% of their disposable income, and long-term leases are the norm.
Rents are regulated, increases are capped, and evictions are hard to enforce without cause. Yet despite this, many German landlords enjoy consistent, long-term income with low void periods and minimal tenant churn.
What we can learn:
Long-term tenants create long-term value.
Stability and fairness can reduce costly turnover.
Stronger tenant protections don’t necessarily mean weaker returns.
France - Moderate affordability, rising demand
French renters spend about 25–30% of their disposable income on rent. Paris is expensive, but rents across the rest of the country are much more modest.
France has experimented with rent controls in major cities, and landlords often must provide multi-year tenancy agreements. There’s strong public support for housing access, and while investor appetite is cautious, long-term landlords enjoy predictable returns.
What we can learn:
Regulated markets can work if they’re well balanced.
Urban markets may require different pricing strategies than suburban or rural ones as the market dynamics differ.
Government intervention is increasingly likely where affordability is strained.
Netherlands - High prices, small spaces
The Netherlands offers an interesting case and one I know well. Renters spend 28–35% of their income on average, but get less space for their money. In Amsterdam, rents can reach €25 per square metre, meaning even modest flats cost well over €1,500 (£1,270) a month.
Landlords face tight controls in the social housing sector, but private rentals are mostly unregulated. That said, proposed legislation is looking to introduce caps in more areas.
What we can learn:
High prices don’t always mean high yields as costs (and tenant expectations) rise too.
Keeping rent aligned with quality and space is crucial to tenant satisfaction.
Regulations can shift quickly, especially in tight markets.
Australia - High rents, low availability
In cities like Sydney and Melbourne, renters now spend 35–40% of their income on rent. Weekly rents often exceed AUD $700 (£360), and vacancy rates are near historic lows.
For landlords, it’s been a boom, but one tempered by rising mortgage rates, strict tenancy laws, and growing political scrutiny.
What we can learn:
Strong demand doesn’t eliminate risk as policy can shift fast.
Yields may look attractive, but rising costs can erode future returns.
Market perception matters as negative press about landlords can shape legislation.
New Zealand - Small country, big housing pressures
In New Zealand, tenants are now spending 40–45% of their income on rent. With average weekly rents around NZD $650 (£305) and lower average salaries, affordability is stretched.
Landlords face tightening regulations, including insulation standards, notice periods, and limits on rent increases.
What we can learn:
When affordability breaks down, so does public support for small landlords.
Investing in quality can pay off in tenant stability and compliance.
Landlords who take a long-term view tend to weather change better.
Singapore - High cost, high income
Singapore’s private rental market is expensive, SGD $3,500–$5,000 (£2,000–£3,000) per month, but incomes are high and demand is steady.
Most Singaporeans own their homes, so renters are largely expats or short-term professionals in the city for work. Tenancies tend to be fixed-term and businesslike.
What we can learn:
Niche markets (e.g. executive lets) can support higher rents and greater certainty if the company pays, but come with turnover risk.
Clarity and professionalism make tenancies smoother.
Price alone doesn’t dictate satisfaction, service matters too.
Hong Kong - A cautionary tale
Hong Kong remains the least affordable place to rent in the developed world. Tenants routinely spend 50%+ of their income on rent, with average flats exceeding HKD $20,000 (£2,000) per month.
Despite the high rents, political uncertainty and social unrest have led to significant voids and falling yields in some sectors.
What we can learn:
Excessive rents eventually lead to pushback.
Resilience is built on trust, value, and long-term thinking.
We’re better off maintaining fair, stable tenancies than maximising short-term profit.
United States - Huge variation, tightening affordability
In the US, renters spend 30–35% of income on average, with some major cities (New York, San Francisco) pushing above 45%. Rents vary wildly: $1,200 (£940) in small cities, $3,000 (£2,350) or more in hotspots.
Leases are often short, turnover is high, and tenant protections vary by state. Landlords enjoy flexibility, but face more risk.
What we can learn:
Flexibility can bring volatility, frequent turnover means more admin and cost.
Rent increases must be balanced with retention strategies.
Look for ways to add value that justify rent reviews (e.g. upgrades, repairs, responsiveness).
So, where does the UK sit?
From a landlord’s perspective, the UK sits somewhere in the middle of the global affordability spectrum. We're more expensive than Germany or Spain, but not as extreme as Hong Kong or New Zealand. What sets us apart, though, is the growing sense among tenants that they’re not getting value for money, especially when it comes to security, space, or long-term stability.
And that matters.
As landlords, we’re offering homes. If we want to maintain strong yields, reduce voids, and build trust with our tenants, we need to stay aware of what’s happening both locally and globally. Because when tenants are under pressure, so are we whether it's through missed rent, faster turnover, or looming regulation.
Final thoughts
Know your market, but also your tenants. Affordability matters as both a social issue and a risk to your tenancies.
Learn from abroad. Countries with more secure, fairer rental systems often enjoy more stable income.
Focus on long-term value. A happy tenant who stays five years is worth far more than a series of top-paying short-stayers because of void periods and property redecoration.
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.
