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PRS supports over 390,000 jobs across UK economy

A recent report published by the NRLA and Paragon, and produced by PwC, reveals that small and medium landlords in the private rented sector (PRS) support over 390,000 jobs, both directly and in the wider economy.

The research findings also show how the PRS in England and Wales makes a gross value added (GVA) contribution of £45bn to the UK economy.

The report’s conclusions indicate that the PRS 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 PRS, 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 £4.5bn 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 £4.5bn, whilst those whose employment is supported by the PRS would also rise by approximately 39,000. 

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