Traditional homeownership models are failing to serve millions of potential buyers according to a new report from Wayhome.
The company, which has pioneered gradual homeownership schemes — and proposes utilising pension schemes to fund affordable housing solutions — says this can be an inclusivity issue that particularly disadvantages key workers, ethnic minorities, older first-time buyers, and Muslim households.
The report —Mind the homeownership gap: the socio-economic implications of the UK’s housing crisis — says that structural barriers such as rising house prices, rigid lending criteria, and lack of culturally appropriate financial products are locking out otherwise financially stable individuals from owning a home.
It points out that ethnic minorities make up 18 per cent of the UK population but just 10 per cent of homeowners. Muslim households represent 6.5 per cent of the population but only 2.9 per cent of homeowners.
The report urges policymakers, investors and pension schemes to support scalable housing models that prioritise inclusion. In doing so, they can unlock long-term value while helping to build a more equitable society.
Wayhome’s Gradual Homeownership model proposes a different approach. a new By removing the need for large deposits and offering flexible, shared investment terms, Gradual Homeownership enables buyers to purchase their home over time – without rent on the portion they own or complex leasehold structures. It says the result is a significantly more inclusive model that aligns with real-world financial realities:
- 47 per cent of Gradual Homeownership homeowners are from ethnic minority backgrounds (compared to 10 per cent nationally)
- 32 per cent are public sector workers (vs. 11 per cent nationally)
- 44 per cent seek Sharia-compliant solutions (vs. 3 per cent national representation)
- 28 per cent are 45+ first-time buyers
Wayhome co-founder and CEO Nigel Purves says: “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 Too many people who should be able to buy a home are locked out by outdated models that no longer reflect modern Britain.”
