In the UK, on average, 32.5% of our monthly outgoings are spent on rent, which is the 12th highest ratio of spending on rent to total outgoings in the world. However, the cost of our rent is only 27.93% of our income, which is the 10th lowest amount in the world.
The research by money.co.uk looked at the average cost of rent for a three-bed property in over 50 developed nations around the world and compared it to other costs of living for a family of four, as well as the country’s average household income.
So how does the UK compare to the rest of the world?
Top 5 countries spending the highest % of outgoings on rent
| Rank | Country | Average monthly rent (three bedrooms) | Family of four estimated monthly living costs | Total monthly outgoings | Rent as % of total monthly spending |
| 1 | Hong Kong | £2,760 | £2,732 | £5,492 | 50.25% |
| 2 | Singapore | £2,253 | £2,532 | £4,785 | 47.08% |
| 3 | Qatar | £1,705 | £2,194 | £3,899 | 43.73% |
| 4 | United Arab Emirates | £1,396 | £2,107 | £3,503 | 39.85% |
| 5 | Kuwait | £1,161 | £1,878 | £3,039 | 38.20% |
Hong Kong was revealed to be the highest spending country on rent in comparison to overall monthly outgoings. In fact, Hong Kong is the only country where the average person actually pays more for their rent than all the rest of their living costs combined. The average three-bed property costs an average of £2,760 per month, which is more or less equal to the monthly cost of looking after a family of four, which clocks in at £2,732 on average.
Top 5 countries spending the lowest % of outgoings on rent
| Rank | Country | Average monthly rent (three bedrooms) | Family of four estimated monthly living costs | Total monthly outgoings | Rent as % of total monthly spending |
| 1 | Saudi Arabia | £424 | £1,799 | £2,223 | 19.07% |
| 2 | Greece | £451 | £1,835 | £2,286 | 19.73% |
| 3 | Turkey | £249 | £989 | £1,238 | 20.11% |
| 4 | Argentina | £300 | £1,161 | £1,461 | 20.53% |
| 5 | Croatia | £475 | £1,831 | £2,306 | 20.60% |
The country where rent takes up the smallest percentage of your finances is Saudi Arabia, with an average rent that’s equivalent to just £424, while other expenses add up to as much as £1,799, with rent, therefore, occupying just under a fifth of monthly outgoings.
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Top 5 countries with the highest rent to income ratio
Top 5 countries with the highest rent to income ratio
| Rank | Country | Average monthly rent (three bedrooms) | Average monthly household income | Rent as % of household income |
| 1 | Azerbaijan | £317 | £444 | 71.49% |
| 2 | Hong Kong | £2,760 | £4,195 | 65.80% |
| 3 | Malta | £1,115 | £1,896 | 58.83% |
| 4 | Russia | £539 | £926 | 58.20% |
| 5 | Belarus | £345 | £609 | 56.62% |
The nation with the highest rent to income ratio was Azerbaijan, where the average rent is fairly low, at £317 per month, with a monthly household income of £444, meaning over 70% of income is spent on rent.
You can view the research in full by clicking here.
The post The cost of rent comparing to overall monthly income and outgoings around the world appeared first on Addicted to Property.