Ethnic minorities spending higher share of their income on housing

Ethnic minorities are spending a bigger share of their household income on housing than white British people.

A new report by the Resolution Foundation has found that white British adults spend 11% of their household income on housing.

That compares with:

• Bangladeshi adults - 23%
• Arab adults - 26%
• Chinese adults - 16%
• Indian adults - 15%

Why are ethnic minorities paying over the odds?

The Resolution Foundation said ethnic minorities are, on average, younger, more likely to privately rent and live in high-cost areas.

However, it stressed that this doesn’t fully explain why they’re paying so much more on housing than white British adults.

The thinktank said one explanation might be that some communities, such as Arabs and South Asians, have a “stronger-than-average attachment to place and community”, and paying a premium as a result.

However, the Resolution Foundation believes discrimination may also be an issue.

Figures showed that 9% of Arab people and 7% of Black Caribbean people have faced ethnic discrimination when accessing housing over the last five years.

Ethnic minorities spending more, but getting less

Despite typically spending a bigger share of their income on housing, ethnic minorities are more likely to live in homes that don’t meet basic quality standards.

For example, figures showed that 9% of Black African adults and 10% of Bangladeshi households currently live in damp conditions.

That compares with just 3% of white British adults.

Meanwhile, ethnic minorities are over nine times more likely to live in overcrowded homes than their white British counterparts.

Camron Aref-Adib, an economist at the Resolution Foundation, said: “Ethnic minority families are at the sharp end of Britain’s housing crisis and would benefit most from actions to tackle it, such as building more homes and strengthening rights for private renters.”

He added that possibility of structural discrimination in the housing market is “a serious concern” that “warrants an official inquiry”.

Government aiming to build homes and strengthen renters’ rights 

The government has already set a target to build 1.5 million more homes in the next five years and put forward legislation to give greater protections to renters.

Among the measures included in the Renters’ Rights Bill are:

• ending no-fault evictions
• making sure rented homes are up to a minimum standard
• ending estate agent bidding wars
• limiting the ability of landlords to raise rent
• preventing landlords from refusing tenants because they have children or claim benefits
• creating a new database of landlords and rental properties to boost compliance and visibility

Are you struggling with housing costs?

If you’re finding it hard to keep up with soaring rents and other living costs, then help is available.

Get in touch with your local council to see you can get help from the household support fund.

You could also use our free calculator to check that you’re claiming all the benefits you’re entitled to.

If you can no longer afford your debts, find out how we can help.