The research, led by the University of Stirling, found that, compared to White, Indian and Pakistani communities, Black and Bangladeshi communities are far less likely to be homeowners, and that they encounter “enduring inequalities” when securing mortgage financing and amassing housing wealth.

Black African, Black Caribbean and Bangladeshi communities have also experienced declining levels of homeownership, says the study, which highlights stark differences in housing wealth across the UK.

However, whilst a racial wealth gap persists among some ethnic groups, others – such as Indian and Pakistani communities – appear to be less disadvantaged by economic constraints and are better able to access employment and financial opportunities, including homeownership, according to the study.

Seventy-four per cent of Indian households, 68% of White British and 58% of Pakistani households are homeowners, compared to 46% of Bangladeshi, 40% of Black Caribbean and 20% of Black African households, according to 2021 census data in England and Wales which was analysed for the study. 

The report points to a direct link between the low numbers of minoritised groups owning homes, and the UK’s recent decline in home ownership - which up until now has been blamed largely on economic factors and rising property prices. The research also points out that young households, which are often cited as struggling to get on the property ladder in the UK, are disproportionately represented amongst Black Caribbean and Black African households. 

The report, a collaboration between the University of Stirling and Sheffield Hallam University, analysed publications, policy documents and guidance on housing from the 1960s to the present day from across the UK.  

Among the findings were that the UK’s Right to Buy policy - introduced in 1980 to extend homeownership to a wider range of households - extended risk to low-income households, amongst them a disproportionate amount of minoritised ethnic groups. Because many of those households lived in high value and poor-quality inner-city localities, they failed to benefit from the policy. 

Funded by the Joseph Rowntree Foundation, the study is part of a series of research by the Foundation into race and ethnicity in the UK. 

Dr Regina Serpa, of the University of Stirling’s Faculty of Social Sciences, said: “Much of the debate around the fall in homeownership in the UK has focused on surging home prices and the inability of young people to get on the property ladder. Our study shows that ethnic inequality plays a large part in the decline.

“It also highlights the causes and consequences of ethnic discrimination in housing at structural, institutional and individual levels, and will help formulate future policy to address the social inequalities which are clearly still rife in the sector.” 

The authors point out a research gap, specifically related to access to credit and mortgage finance, and how property condition, price and marketing affect minoritised groups in the UK.