UK rental sector generates more income than 130 world nations and FTSE 100 companies

Innovative rental app Bunk has revealed the magnitude of tenancy costs in the United Kingdom’s private rental sector, showing how they even eclipse the GDP of 130 countries around the world and several FTSE 100 companies.

Across England, Scotland, Wales and Northern Ireland there are some 5,204,000 tenants currently renting in the private sector.

When multiplying the number of tenants in each county in the UK by the average annual rental cost, the estimated annual value of rental payments in the private sector is a whopping £51.9 billion, which is greater than the Gross Domestic Product (GDP) of more than 100 countries.

The research by Bunk – a modern agency saving Landlords thousands of pounds with their innovative technology – shows that the UK’s annual private sector rental costs are not only a substantial hurdle for tenants but if they were to club together and form an independent rental nation, their financial contribution would surpass the entire nation of Myanmar (Burma) with a GDP of £51.8 billion, as well as the economic efforts of Luxembourg (£48.1bn).

While many UK tenants might wish they could swap the UK rental market for a warmer climate such as Panama (£47.6bn), Uruguay (£45.6bn) and Costa Rica (£44.9bn), they can sleep easy in the knowledge that as a combined force, they contribute a greater sum financially than the total GDP of these Central and South American nations.

A little closer to home Bulgaria (£43.8bn), Croatia (£42.2bn) and Belarus (£41.9bn) also fail to match the might of the UK rental sector, while a lot further from home, the GDP of Lebanon and Tanzania also trails the financial contribution of UK tenants.

We could continue, but as it happens, UK nation rent is actually a greater financial vehicle than at least another 120 world nations.

No surprise then, that the engine room behind these exuberant rental costs, London, could stand on its own two feet with a total annual rental sum of £17.7bn paid each year – outperforming the GDP output of no less than 80 countries around the globe!

As a fraction of the UK’s GDP, private sector rental costs equate to 2.4%, higher than the contribution of agriculture, which accounts for 0.59% of the country’s GDP.

But it doesn’t stop there. UK rentals are not only outperforming the GDP of actual countries, but they are also surpassing the commercial might of a number of FTSE 100 companies.

In fact, the annual contribution of the UK’s private rental sector rental is a higher value than the market caps of companies like Vodafone (£39.1 billion), Lloyds (£35.5 billion), National Grid (£28.5 billion) and Barclays (£25.5 billion), among others.

Tom Woollard, Co-founder of Bunk, commented: “Comparing the market value of the UK rental space to the worth of whole countries not only shows the enormity of what tenants are paying, but also the attractive proposition the buy-to-let sector still presents for landlords despite a number of changes that have dented the profitability of these investments.

While the most recent UK GDP figures released last week show a slight decline in growth, in contrast, the private rental market continues to see a consistent increase almost across the board.

With rents increasing and an acute shortage of properties being built for sale and to rent, we will surely see this upward trend climb further in the future – great for landlords, not as good for beleaguered tenants.

To think, without realising it, the nation’s renters contribute more than the value of countries such as Luxembourg and Costa Rica, even with their apparent wealth in tax-avoidance and coffee, while also dwarfing the commerce giants of Vodafone and Lloyds Bank is actually quite amazing.”

Country
Number of private renters
Average annual rent cost per year
Sum paid*
England
4,530,000
£10,296
£46,640,880,000
Scotland
360,000
£8,784
£3,162,240,000
Wales
176,000
£6,180
£1,087,680,000
Northern Ireland
138,000
£7,344
£1,013,472,000
UK
5,204,000
N/A
£51,904,272,000**

*Average annual rental cost multiplied by the number of private tenants.

**UK figure is the total of each sum paid across each country.

Comparison – GDP*

Country
GDP (£ billion)
Ecuador
80.3
Puerto Rico
80.2
Slovakia
73.9
Cuba
72.2
Sri Lanka
67.3
Ethiopia
62.3
Kenya
61.0
Dominican Republic
58.6
Guatemala
58.2
Oman
54.5
UK – Private Rental Sector
51.9
Burma
51.8
Luxembourg
48.1
Panama
47.6
Uruguay
45.6
Costa Rica
44.9
Bulgaria
43.8
Croatia
42.2
Belarus
41.9
Lebanon
41.7
Tanzania
39.9

*GDP Values from CIA World Factbook (2017 estimates)

Comparison – FTSE 100 by market cap

Company
Market Cap (£ billion)
Royal Dutch Shell
189.7
HSBC
128.3
Unilever
127.4
BP
104.4
Astrazeneca
93.6
BHP
89.8
Glaxosmithkline
83.1
Diageo
80.2
Rio Tinto
71.6
British American Tobacco
68.6
UK – Private Rental Sector
51.9
Reckitt Benchiser
42.7
Prudential
39.9
Vodafone
39.1
Relx
37.3
Lloyds
35.5
Compass
32.1
Glencore
30.9
National Grid
28.5
Anglo American
25.6
Barclays
25.5

 

Sources
Private Renters:
England
Scotland
Wales
Northern Ireland
Average Rents
Rental Costs in England
Rental Costs in Scotland
Rental Costs in Wales
Rental Costs in Northern Ireland
National GDPs
FTSE 100 market cap

 

Properganda PR

National and local media coverage for property businesses. Journo quotes delivered in minutes.

You May Also Enjoy

small house bird box
Breaking News

UK First Time Buyers better off than many other global nations

Is it really that bad being a first-time buyer? UK better off than many other global nations when it comes to affordability The latest market analysis from Yopa, the full-service estate agents, reveals that first-time buyers (FTBs) in the UK may be paying 63% more to get a foot on the property ladder than they…
Read More
new build homes colchester essex
Breaking News

Building Safety Regulator Reform

The Government has announced reforms to the Building Safety Regulator, including leadership, process and investment. The changes are hoped to deliver 1.5 million homes. The reforms pave the way for creation of a single construction safety regulator, as recommended by the Grenfell Tower enquiry. David Smith, property litigation partner at London law firm Spector Constant…
Read More
Breaking News

New anti-money laundering rules now in effect: what landlords need to know

New anti-money laundering (AML) rules came into effect this month, marking a significant change for landlords and the lettings industry as a whole. The new rules mean financial sanctions checks are now required for all lettings, regardless of how much rent is charged. Here, Steve Bond, managing director of residential lettings for Beresfords, explains what…
Read More
Breaking News

What landlords need to know about the upcoming Renters Rights Bill

The government’s long-awaited Renters Rights Bill is one of the most significant overhauls of the private rental sector in decades. While it has not yet received royal assent, the legislation is expected to come into effect late this year, or early in 2026. With the bill moving closer to becoming law, Steven Bond, managing director…
Read More
Breaking News

Mortgage approvals bounce back in May

The latest figures show that: – Mortgage approvals on house purchases for May sat at 63,032 up 3.9% from 60,656 in April. The monthly increase seen in May marks the end of four months of previous decline, with approval levels having fallen each month since January of this year. Approvals are also 2.5% higher than…
Read More
Breaking News

Money and Credit – May 2025

Key points: Net borrowing of mortgage debt by individuals increased by £2.8 billion to £2.1 billion in May, following a large decrease in net borrowing of £13.8 billion to -£0.8 billion in April. Net mortgage approvals for house purchases increased by 2,400 to 63,000 in May. Approvals for remortgaging also increased by 6,200 to 41,500…
Read More