Bangladeshi minority adults are more likely than their white British counterparts to reside in London and the South East, regions with significantly higher housing costs, according to a new report.
Researchers found that housing experiences vary among different ethnic groups, with Black, Bangladeshi, and Arab families facing greater challenges compared to Indian and Chinese households.
Bangladeshi and Arab adults spend a much larger share of their income on housing—23% and 26%, respectively—compared to 11% for white British adults.
Homeownership rates also differ significantly, with 72% of white British adults owning their homes—either outright or through a mortgage—compared to just 35% of Black African and 31% of Arab adults.
The report described Arab and Black adults as being at “the sharp end of Britain’s housing crisis,” facing affordability issues, high private rental rates, poor housing conditions, and discrimination from both neighbors and housing providers.
Despite spending more on housing, ethnic minority households were more likely to live in overcrowded, substandard homes with damp conditions and limited outdoor space. Bangladeshi and Black African households were found to be three times more likely than white British households to experience damp housing, despite allocating a higher share of their income to rent or mortgage payments.
The disparity in housing costs could not be fully explained by income differences, as some groups—such as Chinese adults—typically earn more but still spend a larger portion of their salaries on housing.
Researchers suggested that racial and ethnic discrimination may contribute to the housing cost gap. A study by Generation Rent found that minority ethnic renters were more likely than white British or Irish students to face rude or hostile treatment from landlords or letting agents.
Additionally, stronger community ties among Arab, Indian, Pakistani, and Bangladeshi households may lead them to prioritize staying in familiar neighborhoods, potentially paying higher prices to do so.
The report also highlighted that Black African, Black Caribbean, and Arab adults are overrepresented—by at least three times—among those who are homeless or at risk of homelessness.
Camron Aref-Adib, an economist at the Resolution Foundation, stated: “Ethnic minorities are spending a greater share of their income just to keep a roof over their heads.
“This affordability gap cannot be fully attributed to location or ownership status. And despite spending more, these households are often getting less in return—Black African and Bangladeshi families, for instance, are three times more likely to live in damp homes than white British households.”
He also emphasized that “the possibility of structural discrimination in the housing market is a serious issue that warrants an official inquiry.”
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