.png)
The National Residential Landlords Association have released a report in collaboration with Paragon Bank and PwC outlining the impact that the private rental sector has on the UK economy - in particular, how small to medium landlords support the wider economy.
From research carried out by PwC, the report examined the annual revenue for small to medium landlords using regional data on the overall size of the private rental sector, as well as estimated revenue per rental property. This has revealed the knock on effect in which a decrease of the sector would have on landlords, tenants and others who rely on the private rental sector for employment.
As it stands, the research concluded that the private rental sector in England and Wales provides £45 million to the UK Economy in Gross Value Added contributions and supports 390,000 jobs, whether that is direct, through supply chains or simply through the wider economy. This suggested that a reduction of the private rental sector by only 10% would require approximately 39,000 jobs to be supported by alternative sources to avoid increases in unemployment. Further to this, it was found that this same contraction would result in the UK economy suffering from a loss of £4.5 billion in GVA.
The report clearly highlights the importance that landlords play in the UK economy, with the private rental sector providing high-quality employment and much sought after accommodation in a time of need. If supported correctly, the sector could continue to flourish and provide a momentous number of new jobs.
Richard Rowntree, Managing Director at Paragon Bank has commented “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.”
At Elliot Leigh Guaranteed Rent, we recognise and praise the positive impact that Landlords have on the UK economy. We offer Landlords the opportunity to further make an impact on the social housing crisis via an alternative to traditional letting whilst providing a hassle-free experience and a guaranteed rental income.
Contact us to find out more about the benefits of guaranteed rent.