As well as having to pay more out of their wages, the conditions of homes with ethnic minority households are more likely to be damp or overcrowded, according to Resolution Foundation.
A tenth of households with Black African and Bangladeshi homeowners and tenants lived in properties where damp was an issue, compared to just 3% of white British adults.
Further, ethnic minorities tend to be younger, and more likely to privately rent and live in more expensive areas than white British adults, which has led to an affordability gap in the UK, the report finds.
The affordability gap between ethnic minorities and white British adults was due to age for over half of those surveyed, as more younger people from ethnic minority backgrounds also do not earn enough to afford to purchase their own homes.
Conversely, the Heritage and Home report by Resolution Foundation found Bangladeshi and Arab homeowners would spend twice as much of their household income on housing than white Brits, spending 23%, 26% and 11% respectively.
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On average, Indian and Chinese adults spent 16% and 15% of their incomes on housing.
Ethnicity pay gap data from the Office for National Statistics (ONS) released last month found that Black non-UK-born employees earned 12% less than UK-born white employees.
The report from earlier this year showed Black, African, Caribbean or Black British workers consistently earned less than white Brits since 2012.
However, Asian or Asian British workers in 2022 – the most recent ONS study on the ethnicity pay gap – out-earned white British workers.
As well as earnings, age and living conditions causing a disparity in what families, solo tenants and homeowners who are not white pay and experience with their homes, there was also discrimination that influenced costs.
Almost a tenth (9%) of Arab households and 7% of Black Caribbeans said they had experienced discrimination in accessing housing in the last five years.
Resolution Foundation has called for an official inquiry into how structural discrimination impacts the living conditions and housing costs for ethnic minorities.
While the imminent introduction of the Renters’ Rights Bill implemented by the Government hopes to give private renters more flexibility and better chances to live in affordable homes, there is no inclusion of any plans to address discrimination tenants face.
‘People are getting less in return’
Camron Aref-Adib, economist at the Resolution Foundation, said: “Ethnic minorities are spending a higher share of their income on keeping a roof over their heads.
“This affordability gap can’t be fully explained by where people live and whether they own or rent. And despite spending more, people are getting less in return – with Black African and Bangladeshi households three times more likely to live in damp homes than their white British counterparts.”
Aref-Adib added: “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.
“But the possibility of structural discrimination in our housing market is a serious concern, and one that warrants an official inquiry.”
