A new report published today claims that 390,000 jobs rely on the private rented sector as critics of the sector, including the Guardian newspaper, have called for it to be shrunk or abolished entirely.

Business consultancy giant PwC has compiled the report at the behest of the NRLA and leading mortgage firm Paragon, focussing just on landlords with small and medium size portfolios.

The report also claims that the PRS contributes some £45 billion to the English and Welsh economies, and warns that even a 10% contraction in the sector would lead to tens of thousands of jobs lost.

“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, “ says James Bailey, UK Housing Leader at PwC UK.

£45 billion

“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.”    

The report 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.

Ben Beadle (pictured), 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.

“We hope that this report provides a platform for further discussion about what steps can be taken to make this happen.”

Paragon Bank MD of Mortgages Richard Rowntree adds: “Landlords make a significant contribution to the economy and job creation directly, as this report highlights, but also through facilitating labour mobility.”