Ethnic minority families are spending a larger slice of their income on housing costs compared to white British families, despite living in more overcrowded substandard homes, a new report has found.
New research from thinktank Resolution Foundation suggested this could be down to fewer ethnic minority households owning their own home, or certain nationalities paying more to stay within their local communities. It found discrimination could also be a factor.
Ethnic minority adults are more likely than their white British peers to live in London and the South East, which are areas with higher housing costs, the report added.
The experience of different ethnic minorities also varied, researchers found, with Black, Bangladeshi and Arab families faring worse than Indian and Chinese households.
Bangladeshi and Arab adults spend more than twice as much of their household income on housing compared to white British adults - 23 per cent and 26 per cent respectively, compared to 11 per cent.
White British adults are also more likely to own their home - either outright or through a mortgage - than Black African or Arab adults, with 72 per cent compared to 35 and 31 per cent.
Arab and Black adults were “at the sharp end of Britain’s housing crisis”, the report found, adding: “They have relatively poor experiences on every single housing metric we have investigated, from affordability, rates of private renting and the insecurity that brings, poor housing conditions, and discrimination both from neighbours and when it comes to housing access.”
The research found that the cost disparity wasn’t because ethnic minority adults were in nicer, bigger, more expensive homes. Instead, ethnic minorities were more likely to live in overcrowded substandard homes, with more dampness and less access to outside space.
Bangladeshi and Black-African households were around three times more likely than white peers to live in a damp home despite spending twice as much of their income on housing, the Resolution Foundation found.
The report also suggested that the gap cannot be explained by differences in income. Some ethnic groups - such as Chinese adults - typically earn more but are still spending a larger proportion of their salary on housing, researchers said.
Authors suggested racial and ethnic discrimination may play a part in the cost of housing. Recent research from campaign group Generation Rent found minority ethnic renters were more likely than white British or Irish students to experience rude or hostile behaviour from a landlord or letting agent.
Resolution Foundation researchers also listed a stronger attachment to community and neighbourhood among Arab, Indian, Pakistani and Bangladeshi families, which could be leading households to pay more to stay in their local area.
Black African, Black Caribbean and Arab adults are also overrepresented at least three-fold among people who are homeless or are threatened with homelessness, the report highlighted.
Camron Aref-Adib, economist at the Resolution Foundation, said: “Ethnic minorities are spending a higher share of their income on keeping a roof over their heads.
“This affordability gap can’t be fully explained by where people live and whether they own or rent. And despite spending more, people are getting less in return - with Black African and Bangladeshi households three times more likely to live in damp homes than their white British counterparts.”
He added that “the possibility of structural discrimination in our housing market is a serious concern and one that warrants an official inquiry”.
