Government policies contribute to housing inequality for ethnic minority people, study finds

Key issues identified in the report include the benefit cap, which JRF said “disproportionately” limits the incomes of Black, Asian and minority ethnic families, with 40% of households affected by the cap in England of Black, Asian and minority ethnic origin despite the fact those families make up only 15% of the population as a whole.

The JRF said: “As the cap limits household income, it makes it more difficult for many families to meet their housing costs. This has a direct impact in sweeping families into poverty and destitution.”

A second major factor identified is immigration policy, with the UK’s NRPF policy barring people with temporary immigration status from accessing the social security system.

According to JRF, the affordability analysis of Black, Asian and minority ethnic households excludes Indian households as they are over-represented as homeowners and do not experience all the same challenges in the labour market and housing affordability as other Black, Asian and minority ethnic groups. All other references to Black, Asian and minority ethnic households are inclusive of Indian households.

JRF’s analysis also showed that Black, Asian and minority ethnic workers in lower-paid occupations in London and likely subject to NRPF are three times as likely to be living in unaffordable housing and at risk of poverty and homelessness, compared to white workers.

Labour market inequalities also played a role in widening inequality, with Pakistani, Bangladeshi and Black communities disproportionately likely to be on low incomes. Just under a fifth of Bangladeshi workers and more than one in 10 Pakistani workers are paid below the national minimum wage compared to only 3% of white workers.

The JRF study comes as Inside Housing continues a series of investigating racism in housing in the UK following the creation of its race and housing editorial panel in 2020. The series has highlighted how race can affect the likelihood that people will live in damp properties or experience fuel poverty.

Khem Rogaly, one of the report’s authors, said: “Our research lays bare the shameful reality that people from ethnic minority communities are much more likely to be living in unaffordable housing that has a detrimental impact on their living standards.

“UK welfare and immigration policies are disproportionately limiting the incomes of BAME people, restricting their access to affordable housing, while Right to Rent policy is in some cases driving direct discrimination against certain groups.”

Darren Baxter, housing and policy and partnerships manager at JRF, said: “These injustices are not inevitable, but they have wide foundations in our economy, society and legislation. To tackle them, the government must accept responsibility for the consequences of its decisions.

“Policies which have such a disproportionate impact, and that lead in some cases to destitution and homelessness, must be revisited. If we do not look closely at the systems which are holding people back, we will only continue to see evidence of shocking racial inequalities in our society.”