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| We know there's a housing crisis – but why is it so much worse for black families? | We know there's a housing crisis – but why is it so much worse for black families? |
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| Shineade Sey is about to move. After three years in a flat in south-east London, she is selling up and buying a house with her partner. Sey, who is half Jamaican and half Ghanaian, says she is lucky – when her former employer was bought out she received a payment that meant she was able to buy her first home. “Without that, I would probably still be saving now,” she says. While her white friends had already bought by the time she could afford to, she was among the first of her friends of black descent. “Their parents weren’t able to help them – many were in social housing to begin with and a lot are from single-parent families – I come from a single-parent family, too, and my mum was in her late 30s before she was able to buy … before that, we lived in social housing.” | |
| The family’s story is not unusual. In the UK, black households are much less likely to be homeowners than those headed by someone white or Asian and much more likely to be living in social housing. Fewer than a third of black households are headed by owner-occupiers – either owning their home outright or with a mortgage, according to a House of Commons briefing paper published in June, compared with two-thirds of white families and 58% of Asian households. While home ownership across all ethnicities has fallen since the financial crisis, black families have seen the biggest drop: in 2001 the proportion who were owner-occupiers stood at 39%; by 2016 it had fallen to 29%. The same report showed that 48% of black households were living in social housing. There is also evidence that housing conditions are worse for ethnic minorities: they are much more likely to live in overcrowded homes, and, according to research by Prof Danny Dorling, fellow of St Peter’s College, Oxford, the majority of children living above the fourth floor in blocks of flats are black or Asian. The scale of the home-ownership divide is expected to be confirmed next week with the publication of a “race-disparity audit”, which was commissioned by Theresa May on becoming prime minister. | |
| The low level of home ownership among black families is both a symptom and a cause of poverty. “This is one of the many impacts of economic inequality, of employment and income disparities,” says Farah Elahi, a research and policy analyst at the race equality thinktank Runnymede Trust. In the UK, home ownership is one of the prime ways for families to accrue wealth, and wealth breeds opportunity, says Kevin Gulliver, director of the research charity the Human City Institute and author of the report Forty Years of Struggle: A Window on Race and Housing, Disadvantage and Exclusion. “Any disparity in tenure is going to have a knock-on effect down the generations – in terms of access to education, and other factors in social mobility.” | The low level of home ownership among black families is both a symptom and a cause of poverty. “This is one of the many impacts of economic inequality, of employment and income disparities,” says Farah Elahi, a research and policy analyst at the race equality thinktank Runnymede Trust. In the UK, home ownership is one of the prime ways for families to accrue wealth, and wealth breeds opportunity, says Kevin Gulliver, director of the research charity the Human City Institute and author of the report Forty Years of Struggle: A Window on Race and Housing, Disadvantage and Exclusion. “Any disparity in tenure is going to have a knock-on effect down the generations – in terms of access to education, and other factors in social mobility.” |
| Elahi says that alongside economic reasons there are other things that come in to play: “Age is a factor – the average age of the white population is mid-40s, but for most BME populations it is in the early 20s. Also, most ethnic minorities live in cities – the black community is concentrated in London, where house prices are very high.” | Elahi says that alongside economic reasons there are other things that come in to play: “Age is a factor – the average age of the white population is mid-40s, but for most BME populations it is in the early 20s. Also, most ethnic minorities live in cities – the black community is concentrated in London, where house prices are very high.” |
| More than half of the people who identified as Black/African/Caribbean/Black British in the 2011 census lived in London, and the borough with the largest number of black residents was Lambeth in south London. In that borough, which includes areas such as Brixton and Crystal Palace, the average house price has increased by 76% over the past 10 years, to £529,546. In Croydon, which has the largest African-Caribbean population in the UK, house prices have also been shooting up, with the average cost of a home rising by 62% over the past decade to £374,276. | More than half of the people who identified as Black/African/Caribbean/Black British in the 2011 census lived in London, and the borough with the largest number of black residents was Lambeth in south London. In that borough, which includes areas such as Brixton and Crystal Palace, the average house price has increased by 76% over the past 10 years, to £529,546. In Croydon, which has the largest African-Caribbean population in the UK, house prices have also been shooting up, with the average cost of a home rising by 62% over the past decade to £374,276. |
| Incomes among all groups have failed to keep up with house prices in the country’s hottest markets, but white households typically earn more. Add to this the fact that black and Asian workers are increasingly finding themselves in precarious work. According to research by the TUC, one in every 13 BAME workers is in temporary employment or on a zero-hours contract, compared with one in 20 white workers. Even if you are well paid, this makes getting a mortgage harder; after the financial crisis, a crackdown on lending has made banks less willing to offer loans to those who cannot show regular guaranteed earnings. Most rule out workers on zero-hours contracts straight away. | Incomes among all groups have failed to keep up with house prices in the country’s hottest markets, but white households typically earn more. Add to this the fact that black and Asian workers are increasingly finding themselves in precarious work. According to research by the TUC, one in every 13 BAME workers is in temporary employment or on a zero-hours contract, compared with one in 20 white workers. Even if you are well paid, this makes getting a mortgage harder; after the financial crisis, a crackdown on lending has made banks less willing to offer loans to those who cannot show regular guaranteed earnings. Most rule out workers on zero-hours contracts straight away. |
| Would-be homebuyers have increasingly turned to their families for help. Money often comes from parents’ homes either directly, through them releasing equity, or indirectly, because they have paid off mortgage costs and have disposable income to help out. As housing market analyst Neal Hudson points out, this means that if your parents don’t own, you are less likely to. “The intra-generational effects are being magnified as you move into younger generations,” he says. | Would-be homebuyers have increasingly turned to their families for help. Money often comes from parents’ homes either directly, through them releasing equity, or indirectly, because they have paid off mortgage costs and have disposable income to help out. As housing market analyst Neal Hudson points out, this means that if your parents don’t own, you are less likely to. “The intra-generational effects are being magnified as you move into younger generations,” he says. |
| While the introduction of right-to-buy boosted ownership among white working-class families, rules on council housing in the 70s and 80s tended to shut out those from ethnic minorities, says Gulliver. “At that time, to get social housing you needed to meet residential qualifications, and in a lot of local authorities, including many boroughs of London, you had to have lived there for a certain number of years to be considered for social housing – if you were a new arrival you had very little chance.” He adds: “When people from Asia and the Caribbean first came to the UK there was tremendous discrimination – the famous ‘no dogs, no blacks, no Irish’ sign was the worst of that, but BME people were pushed into the worst private rented housing.” | While the introduction of right-to-buy boosted ownership among white working-class families, rules on council housing in the 70s and 80s tended to shut out those from ethnic minorities, says Gulliver. “At that time, to get social housing you needed to meet residential qualifications, and in a lot of local authorities, including many boroughs of London, you had to have lived there for a certain number of years to be considered for social housing – if you were a new arrival you had very little chance.” He adds: “When people from Asia and the Caribbean first came to the UK there was tremendous discrimination – the famous ‘no dogs, no blacks, no Irish’ sign was the worst of that, but BME people were pushed into the worst private rented housing.” |
| Despite laws to protect minority groups, there are still plenty of signs of discrimination in the housing market. Earlier this year, Kent landlord Fergus Wilson reportedly gave instructions to a letting agency that he would accept “No coloured people because of the curry smell at the end of the tenancy”. And in 2013, an undercover investigation by the BBC found a large number of letting agents who were willing to go along with a landlord’s requirement that homes should not be let to African-Caribbean people. | Despite laws to protect minority groups, there are still plenty of signs of discrimination in the housing market. Earlier this year, Kent landlord Fergus Wilson reportedly gave instructions to a letting agency that he would accept “No coloured people because of the curry smell at the end of the tenancy”. And in 2013, an undercover investigation by the BBC found a large number of letting agents who were willing to go along with a landlord’s requirement that homes should not be let to African-Caribbean people. |
| Naomi says that when trying to rent as a single black female in the Cotswolds, she soon realised estate agents were restricting the properties they showed her. “I only found out by comparing details with their online postings of similar properties that fitted my criteria and budget. When challenged, they usually said the property was not for rent, mistakenly advertised, or would not respond when I tried to set up a viewing appointment.” She once moved out of a property in a rush, to accommodate the landlord – and then, she says, received a letter with the comment: “I would not rent my house to a black person again as your standards of cleanliness fall short.” | |
| She now owns a home with her husband, who is white. And she says that although they had no problems buying, she noticed “odd comments when turning up on spec alone” at estate agents’ offices. “These usually take the form of negative comments about a property to put me off viewing,” she says. ”Yet when my (white) husband has made inquiries about the same property he has been actively encouraged and given immediate appointments. I can’t say if this is overtly racist but it does suggest a pre-existing bias and lack of trust of black people.” Another black African owner-occupier says she thinks estate agents are “less keen on black buyers” and that she was asked to prove her income before putting in an offer, when she knows other people were not. | She now owns a home with her husband, who is white. And she says that although they had no problems buying, she noticed “odd comments when turning up on spec alone” at estate agents’ offices. “These usually take the form of negative comments about a property to put me off viewing,” she says. ”Yet when my (white) husband has made inquiries about the same property he has been actively encouraged and given immediate appointments. I can’t say if this is overtly racist but it does suggest a pre-existing bias and lack of trust of black people.” Another black African owner-occupier says she thinks estate agents are “less keen on black buyers” and that she was asked to prove her income before putting in an offer, when she knows other people were not. |
| Other discrimination is more insidious. In some of the UK’s most mixed communities, property developers have been accused of “whitewashing” adverts and hoardings, choosing photos that fail to reflect the diverse populations nearby. Elahi says she recently watched an advertising video for a new development in Canary Wharf – “this is in Tower Hamlets, one of the most diverse boroughs in the whole country, and all of the people shown milling about in the video were white”. | |
| In 2014, upmarket estate agents Strutt & Parker apologised and pulled an advert for its Notting Hill branch after criticism. The advert featured a black male dancer and a white male estate agent alongside the line: “Some Notting Hill folk were born to dance. Others to sell flats.” At the time the agency said the campaign was “well intended and represented the various talents of people working in Notting Hill. We are obviously very sensitive to the response of people and it was never our intention to offend anyone.” | In 2014, upmarket estate agents Strutt & Parker apologised and pulled an advert for its Notting Hill branch after criticism. The advert featured a black male dancer and a white male estate agent alongside the line: “Some Notting Hill folk were born to dance. Others to sell flats.” At the time the agency said the campaign was “well intended and represented the various talents of people working in Notting Hill. We are obviously very sensitive to the response of people and it was never our intention to offend anyone.” |
| The image of an estate agent as a white man is fairly accurate, though – the property industry as a whole appears to lack diversity. Just 1.4% of people working in the land and property sector are from BAME backgrounds, according to research by the surveyors’ trade body Rics. In 2016, it found that more than two-thirds of firms had workforces that were less ethnically diverse than UK employers as a whole – and that was across companies that had signed up to its campaign for more inclusive workplaces. | The image of an estate agent as a white man is fairly accurate, though – the property industry as a whole appears to lack diversity. Just 1.4% of people working in the land and property sector are from BAME backgrounds, according to research by the surveyors’ trade body Rics. In 2016, it found that more than two-thirds of firms had workforces that were less ethnically diverse than UK employers as a whole – and that was across companies that had signed up to its campaign for more inclusive workplaces. |
| To address the problems of discrimination in the rental market in the 70s and 80s, specialist housing associations sprang up around the country. This might go some way to explaining the large percentage of families living in social housing. But while such tenures used to provide a stable and affordable home, that is no longer always the case. | To address the problems of discrimination in the rental market in the 70s and 80s, specialist housing associations sprang up around the country. This might go some way to explaining the large percentage of families living in social housing. But while such tenures used to provide a stable and affordable home, that is no longer always the case. |
| Councils and housing associations can now charge up to 80% of the market rate for rent, and dwindling stock means more people are ending up in stopgap housing. Fiona grew up in social housing but says that she “really didn’t want to go down that route” when she found herself unable to afford a private rented home last November. Her relationship broke down and then the landlord increased the rent and, despite Fiona being on a full-time teacher’s salary, she and her two children were left in need of help. | Councils and housing associations can now charge up to 80% of the market rate for rent, and dwindling stock means more people are ending up in stopgap housing. Fiona grew up in social housing but says that she “really didn’t want to go down that route” when she found herself unable to afford a private rented home last November. Her relationship broke down and then the landlord increased the rent and, despite Fiona being on a full-time teacher’s salary, she and her two children were left in need of help. |
| “When I first started renting I had savings, but every time I moved the rent went up … in the end I couldn’t even save £20 a month,” she says. She was accepted as homeless by the council, who first put the family in a hostel, then moved them out of London, meaning a two-hour commute to her job in Waltham Forest. This property, however, turned out not to have any electricity or gas, so they were moved to a B&B. “We were meant to be there for six weeks but we were there 10 months,” she says. During this time, the damp at the property made her children ill, and “they were in and out of hospital”. She complained, but it was only when she persuaded the other residents to do so too that the problems were taken seriously – after an Environmental Health inspection, everyone was moved out. | “When I first started renting I had savings, but every time I moved the rent went up … in the end I couldn’t even save £20 a month,” she says. She was accepted as homeless by the council, who first put the family in a hostel, then moved them out of London, meaning a two-hour commute to her job in Waltham Forest. This property, however, turned out not to have any electricity or gas, so they were moved to a B&B. “We were meant to be there for six weeks but we were there 10 months,” she says. During this time, the damp at the property made her children ill, and “they were in and out of hospital”. She complained, but it was only when she persuaded the other residents to do so too that the problems were taken seriously – after an Environmental Health inspection, everyone was moved out. |
| Now they are in a flat in a tower block but they don’t know when they will be moved again – after the Grenfell Tower fire the council has decided to move everyone out to refurbish. Fiona says she feels she has been given a worse deal because of her race: “We do tend to get the worst properties. I’ve talked to other people and the white people are in better areas, their places look a lot cleaner.” The housing officers often come from BME backgrounds, she says, but that does not seem to make a difference. | Now they are in a flat in a tower block but they don’t know when they will be moved again – after the Grenfell Tower fire the council has decided to move everyone out to refurbish. Fiona says she feels she has been given a worse deal because of her race: “We do tend to get the worst properties. I’ve talked to other people and the white people are in better areas, their places look a lot cleaner.” The housing officers often come from BME backgrounds, she says, but that does not seem to make a difference. |
| Polly Neate, chief executive of the housing charity Shelter, says families struggling to keep up with colossal rents and the costs of frequent moves can quickly find themselves in a downward spiral in the way that Fiona did. In some parts of the country, landlords are now asking for two months’ rent upfront, alongside a sizeable deposit, which means having to find large sums before moving in. On top of this are costs than can never be recovered: letting agents’ fees, removal costs and myriad charges for setting up services, redirecting mail and the like. “This affects low-income families from all backgrounds, but it’s particularly worrying to know there has been a specific rise in homelessness among BAME families in recent years,” she says. In some London boroughs, black people are nine times more likely to be homeless than white people, according to a Runnymede Trust report. “This highlights the economic vulnerability facing black communities,” says Elahi. | Polly Neate, chief executive of the housing charity Shelter, says families struggling to keep up with colossal rents and the costs of frequent moves can quickly find themselves in a downward spiral in the way that Fiona did. In some parts of the country, landlords are now asking for two months’ rent upfront, alongside a sizeable deposit, which means having to find large sums before moving in. On top of this are costs than can never be recovered: letting agents’ fees, removal costs and myriad charges for setting up services, redirecting mail and the like. “This affects low-income families from all backgrounds, but it’s particularly worrying to know there has been a specific rise in homelessness among BAME families in recent years,” she says. In some London boroughs, black people are nine times more likely to be homeless than white people, according to a Runnymede Trust report. “This highlights the economic vulnerability facing black communities,” says Elahi. |
| With so many issues contributing to the problem, Gulliver says closing the home-ownership gap will involve action across a wide range of policy areas – not just in the housing sector. Elahi agrees, saying solutions include “tackling economic inequality, building more affordable housing that corresponds to average wages in BME households, and incentivising savings for low-income households”. The current gulf is demonstrably unfair. “If we lived in an equal society you would expect race not to have an impact on your ability to buy a house,” says Elahi. “But it does.” | With so many issues contributing to the problem, Gulliver says closing the home-ownership gap will involve action across a wide range of policy areas – not just in the housing sector. Elahi agrees, saying solutions include “tackling economic inequality, building more affordable housing that corresponds to average wages in BME households, and incentivising savings for low-income households”. The current gulf is demonstrably unfair. “If we lived in an equal society you would expect race not to have an impact on your ability to buy a house,” says Elahi. “But it does.” |
| • Some names have been changed | • Some names have been changed |