Small landlords generate £45 billion for the economy

A report by PwC shines a light on the significant contribution of small and medium-sized landlords in England and Wales to the UK economy.

It was commissioned by the National Residential Landlords Association (NRLA) and Paragon Bank, and it estimates the economic impact of landlords at a staggering £45 billion annually.

This economic contribution, measured by gross value added (GVA), highlights the crucial role landlords play in the economy.

Small landlords – that’s those with fewer than 15 properties – also support 390,000 full- and part-time jobs.

‘Pivotal economic role landlords occupy ‘

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

“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.”

Jobs created by the PRS

The report breaks down job creation into two categories: directly supported jobs and those indirectly impacted by the private rented sector (PRS).

Researchers found there are around 129,000 jobs directly linked to the sector, with a further 260,000 jobs supported by the supply chain and additional spending generated by landlords and tenants.

The real estate, construction, building maintenance and landscaping sectors benefit the most from the activity of small and medium landlords.

The report estimates these sectors see roughly 200,000 jobs supported by the PRS.

Impact of the PRS is spread geographically

The impact of the PRS is spread geographically across England and Wales, with the report suggesting it contributes roughly 2% of GVA in each region.

London, unsurprisingly, sees the highest contribution, with the PRS estimated to generate £14.6 billion in GVA and support 128,000 jobs in the capital.

In Wales, the PRS adds £1.6 billion to the UK’s economy.

Landlords play a vital role

Paragon’s managing director of mortgages, Richard Rowntree, 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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