Some of the biggest names in the trade, lending and advisory sectors have produced a report outlining the vast significance that private renting has for the UK economy.
The report says small and medium-sized private landlords - with 15 or fewer properties - support over 390,000 jobs, both directly and in the wider economy.
The research - from the National Residential Landlords Association, Paragon Bank and the PwC business consultancy - also shows how the private rental sector in England and Wales makes a gross value added (GVA) contribution of £45 billion to the UK economy.
The report’s conclusions indicate that the private rental sector across the two countries supports over 390,000 jobs throughout the sector’s supply chain and the wider economy – a figure which underlines the social as well as economic importance of the market.
The research, carried out by PwC, examines annual revenue for small and medium sized landlords using regional data on the overall size of the private rental sector, as well as estimated revenue per rental property.
The analysis of various scenarios reveals the likely scale of the impact of a contraction in the size of the private rented sector on landlords, tenants, and those whose jobs depend on a flourishing private rented sector.
According to the report’s findings, a 10% reduction in the size of the sector could deprive the UK economy of £4.5 billion of GVA. Moreover, a market contraction on this scale would mean that 39,000 jobs would need to be supported by alternative sources in order to prevent a rise in unemployment.
By contrast, should the sector grow by 10% it is estimated that the GVA supported by the private rental market could increase by £4.5 billion, whilst those whose employment is supported by the PRS would also rise by approximately 39,000.
A statement from the NRLA says that this report underlines how crucial it is that, at a time of chronic supply issues across the private rented sector, all stakeholder groups take into account the sector’s wider importance to landlords and tenants.
Responding to the conclusions, Ben Beadle - chief executive at the NRLA - says: “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.
“We hope that this report provides a platform for further discussion about what steps can be taken to make this happen.”
And Paragon Bank managing director of Mortgages Richard Rowntree - a regular contributor to Landlord Today - adds: “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.”
Finally James Bailey, UK housing leader at PwC UK, notes: “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.”
Click here to access the report’s full conclusions and data.
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Meanwhile a barrister writes in the Guardian yesterday the article “ The end of landlords: the surprisingly simple solution to the UK housing crisis
Mass-scale housebuilding isn’t necessary – there is already enough housing stock. But we need to learn the wisdom of the last century when it comes to landlordism
by Nick Bano”
Obviously I can’t post a link.
Well, it is the Grauniad, after all. They never let the truth get in the way of their far left bias. 😂
It's a Barrister that tells you most of what you need to know, highly paid and detached from life of ordinary people but thinks just because he represents some oppressed minority he understands all of mankind.
What we need is someone other than Ben in charge at the NRLA.
And completely untrue. Due to bedroom occupancy for every 10 houses lost from the PRS 7 bedrooms are no longer used for their intended purposes. A 10% reduction would equate to 1.7 million bedrooms lost! The trouble with all these so called experts is they can’t do maths!!
As the Guardian has a circulation of about 6 these days with a begging bowl attached to every article no news here move on. But I would say this guy has no clue about affordability and the earnings real people need to get a home loan these days. Sounds to me like the charities that house no one who do very nicely from peddling the anti Landlord narrative, is a bandwagon this guy is riding high on.
Nick, maybe no one has told the good barrister the population of the UK has increased by nearly 10million in the last twenty years. Building has been consistently behind the pace not by a couple of thousand but hundreds of thousands every year.
I read that Guardian article 😱😱. If this is what we are up against then we are more up the river than I thought.
Unfortunately it's going to take sometime before the consequences of these lunatics become so aparrent that they have to back down not because they have comprehended the results but because the public at large have and are not voting for them.
We see this with the Green policies, no matter how much they tried to call the public stupid and evil for not going Green, it's not worked - the public don't see the benefit in their pockets of a car that costs double and is worthless once the battery is kaput or a heating system that requires you to wear a coat at home. Eventually the public simply say no.
The Guardian article seemed to completely overlook the fact that historically there was no limit on the number of people who could occupy a house. Of course there were enough houses if unlimited numbers of people could squeeze into them.
Back in the 1950s my mother was a midwife. During my childhood she used to talk about the families living on one of the local Council estates with 13 or 14 children. Those houses have only ever had 2 or 3 bedrooms and today are deemed to be suitable for a maximum of 6 occupants.
It also completely overlooked the fact that PRS tenants often want the ability to up sticks within weeks and move if a better job presents itself. It is the only tenure that allows such mobility.
100% agree. But how housing is used is part of the problem. In the PRS 16% of homes have two or more bedrooms unused as bedrooms. In privately owned it’s 50%. It’s just maths.
While I do agree with Dominic on his point you could also say the unused bedrooms are actually re-purposed and turned into offices for the WFH brigade.
That rag has David Lammy contributing , the intellectual powerhouse who redefined crass stupidity with his world class celebrity mastermind disaster
Has to be seen to be believed
Now he’s on the front bench , that says it all about Labour tbh …
Unfortunately we have created a situation in this country where duty to your country is sneered upon and so Politics now only attracts those seeking to make a quick buck - you'll notice how the intelligent ones leave as soon as they've secured a few non-executive directorships whilst the dim ones seek to pad out their time on quangos and wait for the gold plated pension from parliament.
In America of course you become a politician only after you have sold your soul to a corporate. So with both the Westminster and US systems in terminal decline we need to push for the Swiss system of Public referendum - which of course the Westminster cabal are never going to accept, less they lose the seat on the gravy train.
Jo. I think the same thing happening now all young people forced to buy High Rise Packed-in one & 2 bedroom flats with the collusion of SDLT benefits and other incentives to Buy them just to make massive returns for Big Developers.
Down the line just wait until they have 2/3 kids up there and no escape driven mad.
Make no mistake it’s not about the shortage of housing at all but to oust us for the Big Boys to take over, saturating Town centres with skyscrapers unsuitable flats. Also if it’s the homeless they are worried about why are they prioritising Student Flats like for instance 700 of them next to a Tube Station and plenty more of those dotted around.
Oh, yes they are keeping Section 21 for those / fixed term Contracts it stinks.
The Guardian is only fit for use as toilet paper
I would be truly desperate to use that as toilet paper!
It is all very well this being reported on here, where we all know this stuff already. Why are the authors of this report not pushing for it to be in the mainstream media like Shelter etc do.
Unless the general public, who will be affected by it all, know what is happening, the narrative will never change.
You could say that while Beadles Been About enjoying his liquid lunches Rome has been burning.
2-3 years too late to get involved in this now, traction is with the lefties.
At least we all got discount card.
The one helpful aspect of that Guardian article is that I finally understand why the government is so keen on driving us out. I’ve been at a loss to get my head around why politicians would solve the lack of housing by inciting a landlord exodus. Apparently it’s because house prices were proportionally lower back when buy to let was a tiny market. So all houses will be cheaper therefore people will buy, not rent and councils will take up the slack. Will this strategy work? don’t know, but I’m not hanging around to be tangled in regulation whilst they find out.
Renters Reform should be a salutary reminder to the many professions who earn their living ( or are assisted by ) the PRS !
Then why are renters being priced out and so many still fear no fault eviction..It makes me sick.
SBR I'm sure someone can answer your question better then me, but the reason rents are going up is first due to all the recent increases in costs, taxes etc. and secondly due to landlords selling up causing fewer properties being available. The reason you fear no fault evictions is because landlords are selling up due to the increasing cost reducing their profits and in some cases making a loss. Another factor is the way landlords are treated in general.
So if landlords were supported and encouraged then their would be more properties available and market forces would make the rents more affordable.
Well said John
Those that fear eviction have normally brought it upon themselves, not often ' no fault' Sandra and I think you know that
Nick, quite right. There is a great deal of good solid housing stock for the government to purchase from the landlords and other owners for housing the social tenants. It is crazy to build new cardboard, high rise buildings, which would all deteriorate within 10 years. New built properties will have premium prices. They are usually over-price and prefabricated. As the government want the PRS out, then can buy suitable properties from LLs to quickly get their tenants. Number of properties required each year, can never be built within months, but purchases from LLs is possible within short frame of time line. Within the next 3 to 6 years, the PRS will reduce drastically and impact will be very obvious. The tenants will suffer and not the council's or the central govt or the charities.
The councils want housing in blocks of hundreds, not individual dwellings scattered all over the place, they will be too expensive to maintain.
Sandra, Its not no Fault Eviction its Licensing Schemes & Renters Reform Bill Fault Evictions.
Just another load of tosh from that far left rag. Meaningless.
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