A collaborative report by leading figures in the UK’s trade, lending, and advisory sectors has spotlighted the significant economic and societal impact of the private renting sector. This comprehensive study reveals how small and medium-sized landlords are pivotal in bolstering the economy and housing millions across England and Wales.
Economic Powerhouses
The research, undertaken by the National Residential Landlords Association, Paragon Bank, and PwC, presents a compelling picture of the sector’s economic contributions. According to their findings, landlords with 15 or fewer properties play a crucial role in supporting over 390,000 jobs within the sector and its supply chain, underscoring the vast economic ripple effects of private renting. Furthermore, the private rental sector is shown to contribute a gross value added (GVA) of £45 billion to the UK’s economy, highlighting its significance beyond merely providing accommodation.
Future Scenarios and Impacts
PwC’s analysis delves into the potential outcomes of shifts within the private rented sector, presenting scenarios of both contraction and expansion. A hypothetical 10% decrease in the sector’s size could potentially remove £4.5 billion of GVA from the economy and jeopardize 39,000 jobs. Conversely, a 10% growth could enrich the economy by an additional £4.5 billion and create employment for a further 39,000 people. These scenarios emphasize the sector’s capacity to influence employment and economic stability.
Calls for Support and Growth
Reacting to the report, Ben Beadle, chief executive of the NRLA, stressed the indispensable role of the private rented sector in fostering quality employment and providing essential housing. He advocated for measures to encourage further growth, which could substantially increase job numbers in the future. Richard Rowntree from Paragon Bank and James Bailey of PwC UK echoed these sentiments, highlighting landlords’ contributions to economic fluidity and labor mobility, as well as the significant value small landlords add to the economy annually.
This report serves as a foundation for discussions on enhancing the private rented sector’s positive impact on the UK economy and society, emphasising the need for supportive policies to facilitate its growth and sustainability.
