Billions! Landlords adds so much to the economy, says NRLA

The Welsh private rented sector makes a gross value added (GVA) contribution of £1.6 billion to the UK economy, according to a new report produced by professional services firm PwC for the National Residential Landlords Association and Paragon Bank.

The report examines the annual revenue of small and medium sized landlords (defined as those with 15 or fewer properties) in their portfolio in England and Wales. The £1.6 billion economic contribution made by the Welsh PRS accounts for almost 1.99% of Welsh national GVA.

These new findings, which are based on extensive quantitative research, reveal that 14,000 jobs are supported, both indirectly and directly, by the Welsh private rental market – a reminder that the PRS, across all parts of the UK, underpins significant levels of investment and jobs.

The report also reveals how the private rented sector across England and Wales, contributes £45 billions of GVA to the UK  economy, in the process supporting around 390,000 jobs. Industries supported by economic activity within the UK’s PRS, include construction, building maintenance, and public administration.

Ben Beadle, chief executive at the National Residential Landlords Association, says: “Although we at the NRLA are already well aware of the pivotal economic role landlords occupy across the UK, this research underlines how private landlords support much-needed employment for many across Wales.

“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.

“Doing so will help build a PRS which works in the interests of landlords and tenants throughout the country.”

And Paragon Bank managing director of mortgages Richard Rowntree adds: “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.”

 You can read the full report here.              

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