A report has raised concerns about ethnic minorities and Muslim households being locked out of the market.
Ethnic minorities make up 18% of the UK population but just 10% of homeowners. Muslim households represent 6.5% of the population but only 2.9% of homeowners.
The report from Wayhome blamed rising house prices, rigid lending criteria, and lack of culturally appropriate financial products on the issue.
Nigel Purves, co-founder & chief executive of Wayhome, said: “This report makes one thing clear: homeownership isn’t just a housing issue. It’s a financial inclusion issue. It’s a systemic issue that demands systemic solutions.
“Too many people who should be able to buy a home are locked out by outdated models that no longer reflect modern Britain.”
The report is called ‘Mind the homeownership gap: the socio-economic implications of the UK’s housing crisis’.
To solve the issue policymakers, investors, and pension schemes should support scalable housing models that prioritise inclusion, the report said.
Wayhome utilises a ‘gradual homeownership model’, where buyers gradually purchase their home over time, initially paying rent on the portion they don’t own.
Some 47% of gradual homeownership homeowners are from ethnic minority backgrounds, compared to 10% nationally.