Landlords’ Key Role in Boosting the Regional Economy

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A recent report has highlighted the significant economic impact of the private rented sector (PRS) in the North West of England. According to the findings, this sector contributes a substantial £4 billion to the UK economy in terms of gross value added (GVA). The report underscores the vital role that rental properties play in the regional economy, reflecting their importance beyond just housing.

The report, titled *The Economic Contribution of the Private Rented Sector*, was compiled by business consultancy PwC. It was commissioned by both the National Residential Landlords Association and Paragon Bank. The study aims to quantify the economic benefits brought by small and medium-sized landlords, specifically those managing 15 or fewer properties.

Focusing on the North West, the report reveals that the PRS accounts for 1.76% of the region’s total GVA. This figure highlights the sector’s substantial contribution to the local economy, showing that it plays a key role in economic activity within the area.

The analysis in the report covers various aspects of the PRS, including its impact on employment, local spending, and overall economic performance. By examining the role of small and medium-sized landlords, the report provides insight into how these property owners support regional economies through their investments and operations.

The report from PwC illustrates the crucial economic role of the private rented sector in the North West and provides valuable data for policymakers and stakeholders interested in understanding the broader impacts of housing markets on regional economies.

The report also highlights that the private rented sector (PRS) in the North West contributes significantly to the regional economy by supporting around 34,000 jobs. This employment impact is seen both directly within the sector and indirectly across various related industries. This demonstrates the essential role the PRS plays in fostering economic activity and job creation in the region.

Ben Beadle, chief executive of the National Residential Landlords Association (NRLA), emphasizes the importance of these findings, stating: “The ongoing supply and demand crisis in the UK underscores the need for a vibrant private rented sector. The report illustrates how a strong rental market not only addresses the pressing need for rental properties but also plays a crucial role in maintaining employment across a broad range of industries.”

Beadle further explains that a dynamic and healthy private rental market is beneficial for both landlords and tenants. By providing much-needed rental properties, it helps alleviate the pressures faced by tenants in a challenging housing market. At the same time, it sustains jobs and economic activity across various sectors that depend on the PRS.

The report, which was commissioned by the National Residential Landlords Association and Paragon Bank and authored by business consultancy PwC, underscores the broader economic impact of the PRS. It highlights that a well-functioning rental market contributes to regional economic stability and growth.

As the UK continues to grapple with a housing supply crisis, the findings of this report provide valuable insight into the critical role of the private rented sector. Ensuring its health and functionality is crucial for addressing housing needs and supporting the wider economy.

“This report should serve as a crucial reminder to the Government of the benefits of supporting growth in the private rented sector. By doing so, the Government can help meet the increasing demand for housing while also driving job creation and investment across the entire country. The evidence clearly shows that a thriving rental market is vital for addressing current housing challenges and boosting economic activity.”

Louisa Sedgwick, managing director for mortgages at Paragon Bank, adds, “The report underscores not only the essential role of the private rented sector in providing homes to a diverse population in the North West but also its significant contribution to the regional economy. The private rented sector adds considerable Gross Value Added (GVA) to the North West’s economy and supports an estimated 34,000 jobs. This includes both direct employment and additional roles created through the supply chain and broader economic activities. These findings reinforce the sector’s importance and highlight the need for continued support and investment to sustain its benefits for the region.”