According to the report, even a 10% reduction in the sector could lead to thousands of jobs lost.
At the same time, if the rental market were to expand by 10%, this could bring an estimated £4.5bn of additional GVA and create 39,000 more jobs linked to the sector.
The report outlines a range of key economic benefits attributed to buy-to-let landlords and the private rental sector:
- Direct Benefits: The value and jobs that are created directly by landlords providing housing services. From the value that tenants receive in terms of shelter and household amenities to jobs such as property management or maintenance/repairs.
- Supply Chain Benefits: The value added down the supply chain, generated by demand from landlords as they spend money on letting agents, renovation work, etc, to provide housing services. We have also produced a guide explaining what is UK Serviced accommodation and what to expect from it in 2024 and beyond.
- Spending Benefits: By supporting employment in the economy (both directly and indirectly through supply chains), the sector helps support incomes. Workers utilise this income, thereby fostering additional economic activity across the broader economy.
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