New data has been published by PwC. It shows that the North West’s private rental sector (PRS) now contributes around £4 billion GVA (gross value added) to the broader UK economy, and 1.76% of the region’s total GVA.
The report, titled “The Economic Contribution of the Private Rented Sector”, was commissioned by Paragon Bank and the National Residential Landlords Association (NRLA), and was tasked with considering the economic significance of small and medium-sized landlords across England and Wales.
These are typically defined as investors with anything up to 15 properties in their portfolio, and an estimated 80% of PRS properties fall into this category.
If you are estate planning in Cheshire or neighbouring counties, the North West has garnered a reputation as a popular buy-to-let destination in recent years, with investors increasingly drawn to the Liverpool and Manchester areas.
The report stressed that landlords now provide housing for residents across the UK, with about 4.8 million households currently renting – approximately one in five households.
The NRLA’s CEO, Ben Beadle, said this demonstrates the importance of the UK’s private rental sector as a major driver of investment and employment opportunities across the country. In the North West, the private rental sector either directly or indirectly supports over 34,000 jobs in different industries.
Adding that a strong and healthy PRS is good news for landlords and tenants and for jobs, he urged the government to encourage growth in this segment to address housing demand and boost investment across the country.
