In the dynamic landscape of housing in England and Wales, the private rented sector (PRS) stands out as a cornerstone of both the economy and society at large. A recent report commissioned by the National Residential Landlords Association (NRLA) and Paragon sheds light on the significant impact landlords have, supporting over 390,000 jobs throughout the supply chain and broader economy. This underscores the indispensable role landlords play in the intricate web of employment and economic stability.
The findings of the report, conducted by PwC, reveal staggering figures: the PRS in England and Wales contributes a staggering £45 billion in gross value added (GVA) to the UK economy. This robust economic contribution underscores the far-reaching effects of the PRS, extending well beyond providing housing.
Yet, the report also sounds a cautionary note, highlighting the potential ramifications of a shrinking PRS. A mere 10% reduction in the sector’s size could precipitate a £4.5 billion loss in GVA and jeopardize 39,000 jobs. Conversely, a 10% expansion could herald a £4.5 billion increase in GVA and the creation of an additional 39,000 jobs. These figures underscore the delicate balance and the high stakes involved in nurturing and sustaining the PRS.
Ben Beadle, CEO of the NRLA, underscores the pivotal role of the PRS, stating, “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.” His remarks highlight the multifaceted contributions of the PRS and its potential for further growth in the years to come.
Richard Rowntree, Managing Director of Mortgages at Paragon Bank, emphasizes the broader economic implications of the PRS. He notes, “Landlords make a significant contribution to the economy and job creation directly, as this report highlights, but also through facilitating labour mobility.” Rowntree underscores the PRS’s role in fostering economic agility and enabling both workers and companies to adapt swiftly to changing demands.
James Bailey, UK Housing Leader at PwC, sheds light on the diverse landscape of landlords within the PRS. “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,” he explains. Bailey emphasizes the substantial economic footprint of this segment, contributing £45 billion annually to the wider economy.
In essence, the report underscores the indispensable role of landlords in powering jobs and economic growth in England and Wales. It serves as a clarion call for policymakers and stakeholders to foster an environment conducive to the sustained growth of the PRS, ensuring its continued contribution to employment and economic vitality. As discussions ensue, it is imperative to explore avenues for nurturing and expanding the PRS, thereby fortifying its pivotal role in shaping the socioeconomic fabric of the nation.