Sehj Kaur, Account Executive, has shared insights on the Resolution Foundation’s latest briefing, Heritage and Home, which investigates deep-rooted ethnic disparities in housing affordability across the UK. The findings reveal how tenure type, regional concentration, and systemic barriers contribute to higher housing costs for ethnic minority households. This raises crucial questions about how planning, development, and policy can create a more equitable housing system. Read their briefing here.

The Resolution Foundation’s latest report, Heritage and Home, sheds light on a persistent yet often overlooked issue: ethnic disparities in housing costs. While affordability challenges affect many, ethnic minority households face disproportionately high housing costs, exacerbated by tenure type, geographic location, and structural inequalities in the housing market. For those involved in planning, development, and urban policy, these findings raise fundamental questions. How can the built environment better serve diverse communities? How can planning reforms ensure equitable access to housing? And what role can developers play in addressing these disparities?

Homeownership has long been a key route to financial stability in the UK, but access to it is deeply uneven. White British households have a homeownership rate of 72%, yet for Black African (35%) and Arab (31%) households, ownership is far less common. These disparities are not just about personal choice; they stem from decades of structural barriers, including lower intergenerational wealth, mortgage access issues, and discrimination in the housing market.

For many ethnic minority households, renting is often the only viable option - but that comes at a cost. The report finds that Bangladeshi, Black (Other), and Arab households spend between 23% and 26% of their income on housing, compared to just 11% for White British households. This means less disposable income, more financial stress, and reduced opportunities to save for a home deposit.

Even for higher-income groups such as Indian and Chinese households, affordability pressures persist. Despite earning more on average, these groups still dedicate a greater share of their income to housing than their White British counterparts. The problem is not simply about low incomes; it is about the housing system itself.

London and the Southeast dominate the UK’s housing affordability crisis, and ethnic minorities are disproportionately concentrated in these regions. Around 60% of Black, Pakistani, and Bangladeshi adults live in London, where high housing costs are a persistent challenge. While some might assume this is purely a result of migration patterns, there’s more to the story.

Neighbourhood preferences, job opportunities, and community ties all play a role in keeping people in high-cost areas. However, the report raises a more troubling factor: discrimination. Around 9% of Arab, 7% of Black Caribbean, and 6% of Black African adults report experiencing racial discrimination when accessing housing. If certain groups face barriers to renting or buying outside of traditional ethnic enclaves, their housing choices - and associated costs - are artificially constrained.

The age profile of ethnic minorities compounds these affordability challenges. Many groups have a younger demographic skew, with a higher proportion of adults in the 19-34 age bracket - the very group most likely to face high rental costs and the lowest homeownership rates. This reinforces a cycle where ethnic minority renters are stuck in expensive housing for longer, struggling to save enough to buy.

What makes the briefing particularly important is its challenge to the assumption that housing affordability disparities are simply a product of income differences. Even after accounting for earnings, tenure type, and geography, a significant gap remains unexplained.

One potential reason is the ‘neighbourhood premium’. Ethnic minority households may place a high value on staying in areas where they feel a sense of belonging, pushing up costs in certain local markets. However, this doesn’t explain the full picture. The reality is that discrimination, historic inequalities, and limited access to affordable housing options all contribute to higher housing costs for ethnic minorities.

If left unaddressed, this situation risks deepening social inequalities. Wealth accumulation through homeownership is a major driver of financial security in the UK. If ethnic minority groups continue to be shut out, the racial wealth gap will persist, reinforcing disadvantages for future generations.

Addressing these inequalities requires action across multiple fronts - from government planning policies to private sector investment.

In conclusion, the briefing makes one thing clear: the UK’s housing system is failing ethnic minority communities. This is not just a question of affordability; it is about fairness, access, and opportunity. If housing is to be a foundation for social mobility, rather than a driver of inequality, reforms must go beyond broad affordability initiatives and directly address the structural disadvantages certain groups face.

For those involved in planning and development, this is both a challenge and an opportunity. Inclusive urban policies, better-designed housing solutions, and a commitment to fairness can help create a built environment that works for everyone. But without targeted action, ethnic disparities in housing will remain an enduring stain on the UK’s social fabric.

 

The future of housing policy must not just focus on numbers, but rather the people behind the statistics.