12th
Jun 2024
PwC’s report highlights how significant small to medium sized landlords contributions in England and Wales to the UK economy are.
The report was commissioned by a trade association and a lender which has calculated the economic importance f landlords contributions are standing at a massive £45bn annual input.
When measured by GVA (Gross Value Added) it pinpoints the vital economic role that landlords play in the UK economy.
Small landlords classed as those will less than 15 properties also support around 39,000 full and part time jobs.
The trade association’s spokesman, said: “Although we are already well aware of the pivotal economic role landlords occupy across the UK, this research underlines how private landlords support much-needed employment.
“At a time of ongoing sluggish national economic growth, the Government needs to recognise the contribution the sector makes by encouraging the conditions for greater investment in homes for rent.”
He adds: “Doing so will help build a PRS which works in the interests of landlords and tenants throughout the country.”
The report divides job creation into two distinct categories of directly supported jobs and those indirectly effected by the PRS.
The research team found approximately 129,000 are directly linked to the sector, with a further 260,000 supporting the supply chain and extra spending from landlords and tenants.
The sectors that benefit the most from small to medium sized landlords are of course, real estate, construction, building maintenance and landscaping, which according to the report’s estimation that they see around 200,000 jobs are paid for by the private rental sector.
The report says the contributory impact of private landlords is spread across England and Wales and suggests it is contributing 2% of GVA in each region.
And of course London ‘receives’ the biggest contribution with the PRS has been estimated to bring in £14.6 billion and support 120,000 jobs across the city.
The PRS in Wales is also responsible for adding an extra £1.6 billion to the UK economy.
A spokesperson for the lender, said: “Landlords in Wales play a vital role in providing rental housing for a range of tenant types, including the country’s thriving universities and economic centres in the south and north of the country.
“It’s important that landlords are incentivised to continue their participation in the sector; anything less could result in less choice and higher rents for tenants.”
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