The Welsh private rented sector (PRS) contributes a significant £1.6 billion to the UK economy, according to a detailed report by professional services firm PwC, commissioned by the National Residential Landlords Association and Paragon Bank.
This report focuses on the annual revenue generated by small and medium-sized landlords, defined as those with 15 or fewer properties, in both England and Wales. The £1.6 billion contribution from the Welsh PRS is substantial, accounting for nearly 1.99% of the Welsh national Gross Value Added (GVA). This highlights the crucial role that these landlords play in the broader economy, supporting local jobs and services through their investments in rental properties.
The findings underline the economic importance of the PRS in Wales, illustrating how it not only provides essential housing but also drives economic activity and growth. This contribution is vital in supporting a growing population and meeting the increasing demand for quality rental housing.
The recently unveiled insights, derived from thorough quantitative analysis, shed light on the substantial economic impact of the Welsh private rental market, revealing its support for approximately 14,000 jobs, both directly and indirectly. This underscores the crucial role played by the PRS in fostering investment and job creation across different regions of the UK.
Furthermore, the report delves into the broader contributions of the private rented sector across England and Wales, showcasing its impressive £45 billion contribution to the UK economy. This substantial figure correlates with the support of approximately 390,000 jobs, demonstrating the far-reaching economic influence of the PRS. Industries ranging from construction to building maintenance and public administration benefit from the economic activity generated within the UK’s private rental sector.
Ben Beadle, chief executive at the National Residential Landlords Association, emphasises the significance of these findings, stating that while the NRLA already acknowledges the pivotal economic role of landlords across the UK, this research serves to underscore how private landlords actively support essential employment opportunities for many individuals in Wales.
In the face of ongoing economic challenges, it’s imperative for the Government to acknowledge and appreciate the substantial contribution of the rental sector to the national economy. By fostering conditions conducive to increased investment in rental housing, policymakers can pave the way for sustained growth and stability in the property market. This approach not only benefits landlords by providing a conducive environment for their investments but also ensures a robust rental sector that caters to the diverse needs of tenants across the country.
Furthermore, Paragon Bank’s managing director of mortgages, Richard Rowntree, emphasizes the pivotal role played by landlords in Wales in providing essential rental housing. From supporting university students to accommodating workers in economic centers across the South and North of the country, landlords serve a vital function in meeting the housing needs of various tenant demographics. Thus, it becomes crucial to incentivize landlords to continue their participation in the rental sector. Fostering landlord engagement ensures sustained availability of rental properties, thereby offering tenants a wide range of choices and helping prevent potential rent hikes.
Maintaining a balanced and vibrant rental sector is essential for ensuring housing affordability and accessibility for tenants across Wales. Incentivizing landlords to remain active participants in the sector not only promotes stability and diversity in the rental market but also contributes to overall economic resilience. As such, policymakers and stakeholders must work collaboratively to create an environment that encourages sustained investment in rental housing, benefiting both landlords and tenants alike.
