PRS supports over 390,000 jobs across UK economy, states new report
A new report published by the NRLA and Paragon, produced by leading professional services provider PwC, reveals that small and medium landlords in the private rented sector (PRS) support over 390,000 jobs, both directly and in the wider economy.
The research findings also show how the PRS in England and Wales makes a gross value added (GVA) contribution of £45bn to the UK economy.
The report’s conclusions indicate that the PRS across the two countries supports over 390,000 jobs throughout the sector’s supply chain and the wider economy – a figure which underlines the social as well as economic importance of the market.
The research, carried out by PwC, examines annual revenue for small and medium sized landlords using regional data on the overall size of the PRS, as well as estimated revenue per rental property. You can find the report’s full conclusions here.
The analysis of various scenarios reveals the likely scale of the impact of a contraction in the size of the private rented sector on landlords, tenants, and those whose jobs depend on a flourishing private rented sector. According to the report’s findings, a 10% reduction in the size of the sector could deprive the UK economy of £4.5bn of GVA. Moreover, a market contraction on this scale would mean that 39,000 jobs would need to be supported by alternative sources in order to prevent a rise in unemployment.
By contrast, should the sector grow by 10% it is estimated that the GVA supported by the private rental market could increase by £4.5bn, whilst those whose employment is supported by the PRS would also rise by approximately 39,000.
This report underlines how crucial it is that, at a time of chronic supply issues across the private rented sector, all stakeholder groups take into account the sector’s wider importance to landlords and tenants.
If you’d like to read this report, click here to access the full conclusions and data.
Responding to the report’s conclusions, Ben Beadle, Chief Executive at the National Residential Landlords Association, said:
“What this report makes clear is how the private rented sector plays a pivotal role in providing high-quality employment, as well as desperately needed private rented accommodation, across the UK.
“These findings also underline how further growth could help the PRS to underpin a significant number of additional jobs over the coming years.
“We hope that this report provides a platform for further discussion about what steps can be taken to make this happen.”
Paragon Bank Managing Director of Mortgages Richard Rowntree added:
“Landlords make a significant contribution to the economy and job creation directly, as this report highlights, but also through facilitating labour mobility.
“The PRS has the highest proportion of tenants in employment compared to other tenures and provides economic fluidity, enabling the workforce and companies to quickly adapt to changes in demand.”
James Bailey, UK Housing Leader at PwC UK noted:
“Around 80% of the estimated 4.8 million properties in the private rented sector in England and Wales are provided by landlords with fewer than 15 properties.
“We estimate that this segment of the market contributes £45 billion of value to the wider economy each year. The scale of this footprint demonstrates the significance of the sector in the economy as a whole.”
-ENDS-
Notes
- This report, entitled ‘Economic Contribution of the Private Rented Sector’ and compiled by PwC, can be found here.
- The report estimates the economic contribution of small and medium landlords (defined as those with 15 or fewer rental properties in their portfolios) in England and Wales. Its findings resulted from an economic input-output analysis, and detailed examination of property rental revenue data. Further details on the methodology which underpins this project, can be found in the report’s appendix on page 13.
- The NRLA’s press office can be contacted by emailing [email protected] or by calling 0300 131 6363.
- Paragon’s press team can be contacted by emailing [email protected] or calling 07740090746.
- Further information about the NRLA can be found at www.nrla.org.uk. It tweets @NRLAssociation
