A recent report by professional services firm PwC, commissioned by the National Residential Landlords Association (NRLA) and Paragon Bank, has revealed the substantial economic impact of London’s private rented sector (PRS). The report, titled “The Economic Contribution of the Private Rented Sector,” highlights a gross value added (GVA) contribution of £14.6 billion to the UK economy from the capital’s PRS.

The report provides a detailed analysis of the economic value generated by small and medium-sized landlords, defined as those with 15 or fewer properties, across England and Wales. It emphasizes that the £14.6 billion contribution from London’s PRS accounts for 2.6% of the regional GVA.

In addition to its financial impact, the report states that London’s private rental market supports 128,000 jobs directly and indirectly across various sectors. The broader picture for England and Wales shows the PRS contributing a total of £45 billion to the UK economy, supporting approximately 390,000 jobs.

The report identifies key industries benefiting from PRS activity, including construction, building maintenance, and public administration. These sectors see significant boosts due to the investments and upkeep associated with rental properties.

Ben Beadle, chief executive of the NRLA, commented on the findings: “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 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 benefits not only landlords and tenants but also 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, but 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.”

The report’s findings underscore the critical role of the private rented sector in sustaining London’s economic vitality and providing essential support to its workforce.