White people are 36% more likely to receive a positive response when applying to rent a home than black people, Sky News has learned.
Exclusive figures provided by Generation Rent show apparent racism currently in the rentalmarket.
The campaign organisation used artificial intelligence to set up two fake profiles, a black and a white one, on the rental website SpareRoom. The only differences in their details were their names and skin colour.
Enquiries were sent out by both profiles to property adverts randomly selected across the UK, within minutes of each other, with different responses.
Analysis of more than 210 adverts found that the white facing profile was 36% more likely to receive a positive response than the black facing profile.
The white profile was also 17% more likely than the black profile to receive any response at all.
Image: Generation Rent made applications to the same properties with two AI-generated accounts: One with a white woman and one with a black woman.
In one example the same message was sent by both profiles enquiring about a room in a townhouse.
More on London
Related Topics:
“Hi there, I’m interested in the property, could I arrange a viewing please?” it read.
The white profile, named Lizzie, received this response: “Hi Lizzie, can you tell me a little about how long you would be looking for the room, do you work local etc. Many Thanks.”
Advertisement
The black profile, called Zuri, received a different message stating simply: “Hello, sorry it’s just been let.”
Paris Williams, 25, has been living in a HMO (house of multiple occupancy) in Londonfor the past two years and describes racism as a barrier to finding somewhere better to rent.
“I’ve had my passport inspected,” she says, “(they asked) ‘is it really a British passport? You can’t be British’, but why can’t I be British?
“And then when you’re going house searching [they] ask ‘do you smoke weed? Because I have black tenants who smoke weed’.
“So you’re stuck. You know that you’ve got bad conditions here but you can’t move.”
Paris says the situation she is living in is “hell”.
Image: Paris believes racism has been a barrier to her finding somewhere better to rent
The policy adviser sleeps with an alarm under her room door because she feels unsafe as the front door to the HMO is often left open by other tenants.
She has previously found a stranger in her hallway and once discovered an unknown man taking a shower in her shared bathroom.
“He was clearly visibly homeless,” she says. “He was wet, he didn’t use a towel, he had no socks on. [He said] ‘well your door was open so i just thought I could’.”
In the last two years she has applied for multiple rentals, even changing her clothes, “stripping back” her makeup, and tying her hair back for viewings.
She says she can afford to rent somewhere better because the feeling of being unsafe in her own home is “gut wrenching”.
“I describe it as fight or flight, you’re never really calm, you’re tense, you’re always waiting for something to happen.
“Every little noise – is that something? is it not?”
Tilly Smith, campaigns and partnerships officer from Generation Rent, helped carry out the AI profile research after suspecting discrimination in the rental market.
She describes the knock-on effect it is having, in a broader sense, on ethnic minority groups looking for somewhere to live.
“They’ve been forced into this sort of wild west hostile marketplace where they may or may not be able to find a property,” she said.
“So people become very placid and they feel they have to put up with poor quality housing with poor standards, with mould-ridden properties, with disrepair.
“There is the devastating issue of stress and worry of finding somewhere to live.
“There is also the more long-term enduring issue of people who are black, Asian, or minority ethnic who feel they have to put up with terrible conditions.”
In a statement SpareRoom said their “discrimination policy states nobody can discriminate against or reject someone due to their race.
“We look into every single report of discrimination we receive and investigate thoroughly – if we find that racial discrimination has occurred we’ll remove the user permanently.”
While racism in renting is not a new issue it is believed that it may be getting worse due to the low supply of private rentals available verses demand.
Jabeer Butt OBE, chief executive of the Race Equality Foundation, says competition for “a smaller and smaller resource” may be making things worse.
“You can imagine racism is going to be at the forefront of that sort of thing,” he said.
“But then the reality also is that we know what the solutions are, we know what we can do to make it better.
“We know a significant programme of building social housing will change the whole dynamic of the housing crisis that we face…we’re not even managing to build affordable housing to the scale that we’re meant to be doing.
“And until we do that, the current crisis will carry on or potentially get worse.”
The UK’s biggest housebuilders are set to pay a record sum to fund affordable housing after the competition regulator investigated sensitive information sharing among the firms.
A total of £100m, paid for by seven companies, will go to affordable housing programmes across England, Scotland, Wales and Northern Ireland, following a Competition and Markets Authority (CMA) investigation.
The inquiry was launched last year due to concerns that the companies were sharing commercially sensitive information, which could influence the prices of new homes.
There was concern that the housebuilders – Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry – exchanged details about property sales, including pricing, viewing numbers and buyer incentives such as upgraded kitchens or stamp duty contributions.
It’s resulted in an agreement to make the combined £100m payment – the largest secured via a commitment from companies under CMA investigation. Hundreds of new homes could be funded with the money, the CMA said, helping low-income households, first-time buyers and vulnerable people.
The businesses have voluntarily agreed to pay the sum and have not acknowledged wrongdoing. No finding of rule-breaking or illegality has been made.
More on Cma
Related Topics:
What next?
They have also offered to sign up to legally binding commitments to prevent anticompetitive behaviour.
Among the proposals advanced by the companies was an agreement not to share some information, like prices houses were sold for, with other housebuilders, except in limited circumstances, and to work with the Home Builders Federation and Homes for Scotland to develop industry-wide guidance on information sharing.
If accepted, the commitments will become legally binding, and the CMA will not need to decide whether the housebuilders broke competition law.
Initially, eight companies were under investigation, but following a merger of Barratt Homes and Redrow, the number became seven.
“Housing is a critical sector for the UK economy and housing costs are a substantial part of people’s monthly spend, so it’s essential that competition works well. This keeps prices as low as possible and increases choice,” the CMA chief executive, Sarah Cardell, said.
At least 13 people may have taken their own lives after being accused of wrongdoing based on evidence from the Horizon IT system that the Post Office and developers Fujitsu knew could be false, the public inquiry has found.
A further 59 people told the inquiry they considered ending their lives, 10 of whom tried on at least one occasion, while other postmasters and family members recount suffering from alcoholism and mental health disorders including anorexia and depression, family breakup, divorce, bankruptcy and personal abuse.
Writing in the first volume of the Post Office Horizon IT Inquiry report, chairman Sir Wyn Williams concludes that this enormous personal toll came despite senior employees at the Post Office knowing the Horizon IT system could produce accounts “which were illusory rather than real” even before it was rolled out to branches.
Sir Wyn said: “I am satisfied from the evidence that I have heard that a number of senior, and not so senior, employees of the Post Office knew or, at the very least, should have known that Legacy Horizon was capable of error… Yet, for all practical purposes, throughout the lifetime of Legacy Horizon, the Post Office maintained the fiction that its data was always accurate.”
Referring to the updated version of Horizon, known as Horizon Online, which also had “bugs errors and defects” that could create illusory accounts, he said: “I am satisfied that a number of employees of Fujitsu and the Post Office knew that this was so.”
The first volume of the report focuses on what Sir Wyn calls the “disastrous” impact of false accusations made against at least 1,000 postmasters, and the various redress schemes the Post Office and government has established since miscarriages of justice were identified and proven.
Please use Chrome browser for a more accessible video player
3:28
‘It stole a lot from me’
Recommendations regarding the conduct of senior management of the Post Office, Fujitsu and ministers will come in a subsequent report, but Sir Wyn is clear that unjust and flawed prosecutions were knowingly pursued.
“All of these people are properly to be regarded as victims of wholly unacceptable behaviour perpetrated by a number of individuals employed by and/or associated with the Post Office and Fujitsu from time to time and by the Post Office and Fujitsu as institutions,” he says.
What are the inquiry’s recommendations?
Calling for urgent action from government and the Post Office to ensure “full and fair compensation”, he makes 19 recommendations including:
• Government and the Post Office to agree a definition of “full and fair” compensation to be used when agreeing payouts • Ending “unnecessarily adversarial attitude” to initial offers that have depressed the value of payouts, and ensuring consistency across all four compensation schemes • The creation of a standing body to administer financial redress to people wronged by public bodies • Compensation to be extended to close family members of those affected who have suffered “serious negative consequences” • The Post Office, Fujitsu and government agreeing a programme for “restorative justice”, a process that brings together those that have suffered harm with those that have caused it
Regarding the human impact of the Post Office’s pursuit of postmasters, including its use of unique powers of prosecution, Sir Wyn writes: “I do not think it is easy to exaggerate the trauma which persons are likely to suffer when they are the subject of criminal investigation, prosecution, conviction and sentence.”
He says that even the process of being interviewed under caution by Post Office investigators “will have been troubling at best and harrowing at worst”.
The report finds that those wrongfully convicted were “subject to hostile and abusive behaviour” in their local communities, felt shame and embarrassment, with some feeling forced to move.
Detailing the impact on close family members of those prosecuted, Sir Wyn writes: “Wives, husbands, children and parents endured very significant suffering in the form of distress, worry and disruption to home life, in employment and education.
“In a number of cases, relationships with spouses broke down and ended in divorce or separation.
“In the most egregious cases, family members themselves suffered psychiatric illnesses or psychological problems and very significant financial losses… their suffering has been acute.”
The report includes 17 case studies of those affected by the scandal including some who have never spoken publicly before. They include Millie Castleton, daughter of Lee Castleton, one of the first postmasters prosecuted.
Please use Chrome browser for a more accessible video player
1:34
Three things you need to know about Post Office report
She told the inquiry how her family being “branded thieves and liars” affected her mental health, and contributed to a diagnosis of anorexia that forced her to drop out of university.
Her account concludes: “Even now as I go into my career, I still find it so incredibly hard to trust anyone, even subconsciously. I sabotage myself by not asking for help with anything.
“I’m trying hard to break this cycle but I’m 26 and am very conscious that I may never be able to fully commit to natural trust. But my family is still fighting. I’m still fighting, as are many hundreds involved in the Post Office trial.”
Business Secretary Jonathan Reynolds said the inquiry’s report “marks an important milestone for sub-postmasters and their families”.
He added that he was “committed to ensuring wronged sub-postmasters are given full, fair, and prompt redress”.
“The recommendations contained in Sir Wyn’s report require careful reflection, including on further action to complete the redress schemes,” Mr Reynolds said.
“Government will promptly respond to the recommendations in full in parliament.”
The UK’s public finances are in a “relatively vulnerable position”, the government’s official forecaster has warned.
The Office for Budget Responsibility (OBR) cited a drag from successive economic shocks, recent U-turns on spending cuts and higher-than-expected policy commitments.
It sounded alarm over the projected path for debt as a result, in its annual fiscal risks and sustainability report.
It saw total debt above 270% of gross domestic product (GDP) by the early 2070s – up from a current level of 96.5% – declaring that rising debts have led to “a substantial erosion of the UK’s capacity to respond to future shocks”.
The OBR’s report highlighted damage from the COVID pandemic and cost of living crisis that followed Russia’s invasion of Ukraine.
But it raised fears that past and current government policies were further harming the sustainability of the public finances.
More from Money
The report said that the pension triple lock, for example, was now estimated to cost £15.5bn annually by 2029-30.
That was “around three times higher than initial expectations”, it said.
The lock, which rises each year in line with inflation, wage growth or 2.5% – whichever is higher – had risen by more than the 2.5% base in eight of the 13 years of operation to date, the report stated.
The watchdog said it reflected more volatile inflation than expected.
It also picked up on the latest government U-turns over planned welfare and winter fuel payment cuts in the face of rebellions by Labour MPs.
Please use Chrome browser for a more accessible video player
9:11
Welfare U-turn ‘has come at cost’
The decisions are expected to leave Chancellor Rachel Reeves facing a black hole of £6.75bn while weaker-than-expected economic growth could add a further £9bn to that sum in the run-up to the autumn budget, according to Sky News projections that see a void of around £20bn.
The OBR highlighted future risks from rising defence spending and the impact of climate change.
Public sector pay demands could also prove a drag, with resident doctors voting in favour of strikes over pay.
While ministers acknowledge damage to the public purse from the U-turns, Ms Reeves has repeatedly ruled out a new wave of borrowing to fund a spending spree.
Please use Chrome browser for a more accessible video player
1:56
Could the rich be taxed to fill black hole?
As such, the government has not ruled out the prospect of some form of wealth tax to help meet its commitments despite the top 1% of earners contributing almost a third of all income tax already – on top of other targeted taxes such as capital gains.
The report said: “Efforts to put the UK’s public finances on a more sustainable footing have met with only limited and temporary success in recent years in the aftermath of the shocks, debt has also continued to rise and borrowing remained elevated because governments have reversed plans to consolidate the public finances.
“Planned tax rises have been reversed, and, more significantly, planned spending reductions have been abandoned.”
Shadow chancellor Mel Stride said of the report: “The OBR’s report lays bare the damage: Britain now has the third-highest deficit and the fourth-highest debt burden in Europe, with borrowing costs among the highest in the developed world.
“Under Rachel Reeves’ economic mismanagement and Keir Starmer’s weak leadership, our public finances have become dangerously exposed – vulnerable to future shocks, welfare spending rising unsustainably, taxes rising to record highs and crippling levels of debt interest.
“Labour’s recklessness risks it all – your pension, your job, your home, your savings.”
A Number 10 spokesman said: “We recognise the realities set out in the OBR’s report and we’re taking the decisions needed to provide stability to the public finances.”