PRS supports more than 390,000 jobs and generates £45 billion

PRS supports more than 390,000 jobs and generates £45 billion

9:33 AM, 20th March 2024, About 3 months ago 6

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The private rented sector (PRS) in England and Wales supports more than 390,000 jobs across its supply chain and the wider economy, underlining the crucial role that landlords play in society and the economy.

The report by PwC was commissioned by the National Residential Landlords Association (NRLA) and Paragon, and it also found that the PRS in those two nations generates £45 billion in gross value added (GVA) for the UK economy.

The report’s findings highlight the potential consequences of a shrinking PRS since a 10% reduction in the sector’s size could result in a £4.5 billion loss of GVA to the economy and threaten 39,000 jobs.

However, a 10% growth in the PRS could lead to a £4.5 billion increase in GVA and create an additional 39,000 jobs.

‘The private rented sector plays a pivotal role’

The chief executive of the NRLA, Ben Beadle, said: “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.

“These findings also underline how further growth could help the PRS to underpin a significant number of additional jobs over the coming years.”

He added: “We hope that this report provides a platform for further discussion about what steps can be taken to make this happen.”

‘Landlords make a significant contribution to the economy’

Richard Rowntree, the managing director 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.

“The PRS has the highest proportion of tenants in employment compared to other tenures and provides economic fluidity, enabling the workforce and companies to quickly adapt to changes in demand.”

James Bailey, the UK housing leader at PwC, said: “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.

“We estimate that this segment of the market contributes £45 billion of value to the wider economy each year.

“The scale of this footprint demonstrates the significance of the sector in the economy as a whole.”


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Comments

dismayed landlord

10:34 AM, 20th March 2024, About 3 months ago

Um can Ben jump any further between the lines. He would make a fantastic politician!

Cider Drinker

10:38 AM, 20th March 2024, About 3 months ago

I’d say it’s tenants and housing that make a significant contribution to the economy.

If the houses were owned by homeowners then much of the ‘GVA’ would still be added.

Where tenants contribute is when they refuse to do the simplest of tasks themselves. Landlords pay tradespeople to do the work and this adds to the high rents that tenants complain about.

Government adds to GVA through over regulation and unfair taxation (that tenants end up financing).

John MacAlevey

11:38 AM, 20th March 2024, About 3 months ago

`Where tenants contribute is when they refuse to do the simplest of tasks themselves. Landlords pay tradespeople to do the work and this adds to the high rents that tenants complain about.`

Correct, tenants are astonishingly dim when it comes to the way finance circulates in the PRS. It reminds me of a child that stamps it foot if their probelm isnt sorted in seconds, it costs more in the long run & the tenant pays.

Rerktyne

12:23 PM, 20th March 2024, About 3 months ago

There is a small town , Aldeburgh; it’s by the sea. Very expensive and full of second homes. My friend has one. He told me that one of the tradesmen he uses complains that if the holiday home people cleared off due to “Retards R Us” (qua the government) then there would be little if any demand for his services and those of others. Moreover the pubs, restaurants, other shops etc would close down: this would lead to their workers leaving the area NOT poor people coming in: poor people going out!!
Even if you increase supply of PRS how do people without jobs pay the rent!! Plus, what subspecies of imbecile would invest in rental property in a place without jobs??
In other words you would destroy a healthy small town and its micro-economy. You would also add lots of people to the negative equity group which will need to go into PRS - which is shrunken.
But there is a solution: build lots of luxury offices and make the highly paid hi tech people like Microsofties and bank people all move to Aldeburgh having left Belgravia etc. Right?!!?? You never know they might even fly in from San Francisco!!
Given this inane logic some govt thinker is bound to pick it up!!

Michael Booth

17:30 PM, 20th March 2024, About 3 months ago

Forget about the money for 1 minute and look at how many humans the prs house and then you will see how important it is to society .

Reluctant Landlord

18:59 PM, 20th March 2024, About 3 months ago

all totally irrelevant when you need votes OR want to be seen to be representing the 'oppressed' to keep your job.

Voters are simply there for the deceiving.

Most politicians would sell their Granny if need be.

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