A report by professional services firm PwC, commissioned by the National Residential Landlords Association (NRLA) and Paragon Bank, indicates that London’s private rented sector makes a gross value added (GVA) contribution of £14.6bn to the UK economy.
Entitled ‘The Economic Contribution of the Private Rented Sector’, the report examines the economic value generated and supported by small and medium-sized landlords (those with 15 or fewer properties) in England and Wales, and states that the £14.6bn economic contribution made by London’s PRS accounts for 2.6% regional GVA.
The report also states that London’s private rental market supports, directly and indirectly, 128,000 jobs in a number of areas.
Further findings reveal that the private rented sector in England and Wales contributes, in total, £45bn 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.
Ben Beadle, chief executive of the NRLA, commented: “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, 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.”
