The Economic Impact of Landlords: Recent PwC paper details the important contribution to the economy

A paper detailing the enormous importance of private renting to the UK economy was written by some of the largest names in the trade, financing, and advising industries.

Small and medium-sized private landlords, defined as those with 15 properties or fewer, are said to support roughly 390,000 employment in the economy overall as well as directly.

The National Residential Landlords Association, Paragon Bank, and PwC business consultancy conducted the research, which also demonstrates how the private rental industry in England and Wales contributes £45 billion in gross value added (GVA) to the UK economy.

The study's findings show that the private rental market in the two nations sustains over 390,000 jobs in the economy at large and in the sector's supply chain, highlighting the industry's significance on both a social and economic level.

PwC conducted the research, which looks at small- and medium-sized landlords' annual revenue using anticipated revenue per rental property and regional data on the total size of the private rental market.

An examination of multiple scenarios indicates the probable extent of the effects of a reduction in the private rental sector's size on landlords, tenants, and individuals whose employment relies on a thriving private rental industry.

The report's conclusions indicate that the UK economy might lose £4.5 billion in GVA if the sector were to shrink by 10%. Furthermore, such a market contraction would require the backing of 39,000 jobs from outside sources to keep unemployment from rising.

In contrast, it is predicted that a 10% growth in the sector would result in an increase in the GVA of £4.5 billion, which would also benefit people whose jobs are supported by the PRS.

According to a statement from the NRLA, this analysis highlights how important it is for all stakeholder groups to consider the sector's broader value to landlords and tenants during a period of persistent supply challenges throughout the private rental sector.

Ben Beadle, chief executive of the NRLA, comments on the findings, saying: "This report makes clear 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." These results also highlight the ways in which additional growth might support a considerable number of new jobs in the PRS in the years to come.

"We hope that this report serves as a starting point for additional conversation about how to achieve this."

And MD of Mortgages at Paragon Bank said - "Landlords make a significant contribution to the economy and job creation directly, as this report highlights, but also through facilitating labour mobility," continues Richard Rowntree, a regular contributor to Landlord Today. Compared to other tenures, the PRS has the highest percentage of employed tenants and offers economic flexibility, allowing businesses and workers to easily adjust to fluctuations in demand.

Lastly, James Bailey, UK housing head at PwC UK, observes: "Landlords with fewer than 15 properties provide about 80% of the estimated 4.8 million properties in the private rented sector in England and Wales." Our estimate is that the value added by this market segment to the overall economy is £45 billion annually. The size of this footprint indicates how important the industry is to the overall economy.