Welsh private rented sector makes £1.6 bn contribution to UK economy, says new report
The Welsh private rented sector (PRS) makes a gross value added (GVA) contribution of £1.6 bn to the UK economy, according to a new report produced by professional services firm PwC for the NRLA and Paragon Bank.
The report, titled ‘The Economic Contribution of the Private Rented Sector’, examines the annual revenue of small and medium sized landlords (defined as those with 15 or fewer properties) in their portfolio in England and Wales. The £1.6 bn economic contribution made by the Welsh PRS accounts for almost 2% (1.99%) of Welsh national GVA.
These new findings, which are based on extensive quantitative research, reveal that 14,000 jobs are supported, both indirectly and directly, by the Welsh private rental market – a reminder that the PRS, across all parts of the UK, underpins significant levels of investment and jobs.
The report also reveals how the private rented sector across England and Wales, contributes £45 bn of GVA to the UK economy, in the process supporting around 390,000 jobs. Industries supported by economic activity within the UK’s PRS, include construction, building maintenance, and public administration.
If you’d like to read the report’s conclusions in full, click here to read the conclusions and data in their entirety.
Responding to the report’s conclusions, Ben Beadle, Chief Executive at the National Residential Landlords Association, said:
“Although we at the NRLA are already well aware of the pivotal economic role landlords occupy across the UK, this research underlines how private landlords support much-needed employment for many across Wales.
“At a time of ongoing sluggish national economic growth, the Government needs to recognise the contribution the sector makes by encouraging the conditions for greater investment in homes for rent.
“Doing so will help build a PRS which works in the interests of landlords and tenants throughout the country.”
Paragon Bank Managing Director of Mortgages Richard Rowntree added:
“Landlords in Wales play a vital role in providing rental housing for a range of tenant types, including the country’s thriving universities and economic centres in the South and North of the country. It’s important that landlords are incentivised to continue their participation in the sector; anything less could result in less choice and higher rents for tenants.”
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 UK economy each year. This includes contributing £1.6 bn to the Welsh economy and supporting 14,000 jobs in Wales, which demonstrates the significance of the sector in the Welsh and UK-wide economy."
-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.
