Report highlights £14.6 billion economic contribution of the London private rented sector
A report by professional services firm PwC, commissioned by the NRLA and Paragon Bank, indicates that London’s private rented sector (PRS) makes a gross value added contribution of £14.6bn to the UK economy.
Entitled "The Economic Contribution of the Private Rented Sector," the report delves into the economic value generated and supported by small and medium-sized landlords (those with 15 or fewer properties) in England and Wales. The report states that the £14.6 billion economic contribution made by London’s PRS accounts for 2.6% regional GVA.
The report also highlights that London’s private rental market supports, directly and indirectly, 128,000 jobs in a number of areas. The figure underlines the important role that the UK’s PRS plays in encouraging investment and employment across a range of regions.
Further findings from the report reveal that the private rented sector in England and Wales contributes, in total, £45 billion of GVA to the UK economy, and supports approximately 390,000 jobs. Key industries which benefit from the PRS’s economic activity include construction, building maintenance, and public administration.
To read more of the report’s findings, please click here.
Ben Beadle, Chief Executive of the National Residential Landlords Association, responded to the report:
"These findings underline the extent to which the PRS plays a pivotal role in the delivery of much-needed investment and jobs.
“Although the national contribution that the PRS makes is significant, the positive impact the PRS makes can be seen most clearly in the regional data featured in this report.
“It’s an important reminder of how a thriving private rented sector is in the interests of not only landlords and tenants, but also to the market’s wider supply chain which depends on high levels of investment.”
Richard Rowntree, Managing Director of Mortgages at Paragon Bank, added:
“London is a transient city and, as such, requires a thriving private rental sector to serve the capital’s tenants. Not only does the London rental sector make a direct economic contribution, it also supports the city’s wider economy by providing housing for hundreds of thousands of tenants who work in the city across a broad range of sectors.”
-ENDS-
Notes
▪ This report, entitled ‘Economic Contribution of the Private Rented Sector’ and compiled by PwC, can be found on the NRLA’s website 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 the 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.
▪ Further information about the NRLA can be found at www.nrla.org.uk. It tweets @NRLAssociation.
