London’s PRS boosts the UK’s economy by £14.6bn

London’s private rented sector (PRS) is a key driver of the UK economy, contributing a substantial £14.6bn to the nation’s wealth, a new report reveals.

A study by PwC, commissioned by the National Residential Landlords Association (NRLA) and Paragon Bank, underscores the PRS’s economic significance.

The sector supports 128,000 jobs in the capital alone, highlighting its role in fostering investment and employment.

Nationally, the PRS generates £45bn for the UK economy and sustains 390,000 jobs, the report, ‘The Economic Contribution of the Private Rented Sector’ found.

Construction, building maintenance and public administration are among the sectors benefiting from PRS activity.

‘The PRS plays a pivotal role’

The NRLA’s chief executive, Ben Beadle, said: “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.”

He adds: “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.”

‘Thriving private rental sector’

Richard Rowntree, Paragon’s managing director of mortgages, said: “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, 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.”