Share:

The German Rental Model

Germany is known as a nation of renters, with around 50% of people renting their homes, compared to just 20% in the UK. This is largely down to a culture of more long-term stability, strong tenant protections, and a nation of people that don’t actually see homeownership as the ultimate goal.

A few key differences include:

  • Longer Tenancies – In Germany, rental contracts are often indefinite! This means tenants have much more security and can’t be asked to leave without a legitimate reason.
  • Stricter Rent Controls – In many areas, landlords can only increase rent within government-set limits, ensuring affordability!
  • Tenant Responsibilities – Tenants will often take full responsibility for fixtures and fittings, with unfurnished rentals being the norm (sometimes even without kitchens!).
  • Professional Landlords – Many rental properties are actually owned by large companies or investment funds, rather than individual landlords, leading to a more regulated and structured system.

Compare this to the UK...

In the UK, renting is often seen as a stepping stone to homeownership, and short-term tenancies (usually 6 or 12 months) are much more common. Landlords can increase rent based on market conditions, and tenants often feel less secure.

However, things are changing, and it’s going to be happening very soon! The upcoming Renters (Reform) Bill, is currently making its way through Parliament. It aims to improve tenant security by scrapping Section 21 evictions and introducing a more standardised rental system.

While this won’t bring the UK in line with Germany overnight...it does suggest a shift towards a fairer, more balanced rental market.

Would a German-Style System Work Here?

In our opinion, there are pros and cons to both systems. Longer tenancies and rent controls offer stability, but it can be said that stricter rules could discourage investment in rental properties, reducing availability. We’re already seeing a decline in the number of rental properties available. Some might say that professional landlords would improve standards, but would this mean fewer opportunities for individuals to invest in buy-to-let?

We’d love to hear your thoughts. Would you welcome a German-style rental system in the UK, or do you think the upcoming reforms strike the right balance? Let us know in the comments!