Black British families have been left with no wealth through home ownership according to new data. According to exclusive statistics obtained by Bloomberg, the median value of a Black British family’s property wealth over the past decade is zero.   

The figures by the Office for National Statistics show a worrying trend of no accumulation of wealth through home ownership for Black families of Caribbean or African heritage. The information did show during the same period, a White British family generated a net of £115,000 from land or property.

For many property experts these figures are shocking but shouldn’t deter the Black community from getting on the property ladder. Property investor, Dean Davidson, said: “My advice would be to network with people in the industry and get a mentor who wants to see you achieve the goal of buying a home.

“Also, I would say not to be scared. Fear stops so many of us from achieving our dreams.” Mr Davidson, who is also a Music Mentor, bought his first property in the East Midlands for £32,000 in 1998.

He purchased the property in Derbyshire, at 23 years old but didn’t realise the importance of home ownership until much later. Mr Davidson’s parents were originally from Jamaica and worked hard to provide for their family. However, they didn’t have any experience in property investment which made it difficult for them to pass on any vital information to him.

He said the lack of expertise about the housing industry is holding many in the Black community back.

Networking and Education

He told The Voice: “We don’t get the opportunity to understand about housing because we are pushed into being a footballer or pursuing careers in music. “There is nothing wrong with these careers, but we have so many more options available to us.”

Mr Davidson, who told The Voice he is Dyslexic, said he didn’t let his learning disorder stop him from learning everything he could to understand the housing market. He said: “In the last couple of years, I decided to educate myself and I attended courses and watched videos on YouTube to understand the process.

“I also read a lot of good books about investing which changed my outlook. I read books like Rich Dad Poor Dad by Robert T. Kiyosaki and that really helped me to understand investing and wealth. If I can do it, anyone can.”

Davidson also added the key to his success was networking at events and finding the right people to have on his team in his property business.

Davidson explained he didn’t have any barriers, but he did notice friends and colleagues from other backgrounds had a “much easier” purchasing journey. He said: “I have a lot of Asian friends and they work together to help each other get on the property ladder. It is a culture thing for them and it is something we can learn from.”

He also recalls growing up and seeing the stark differences between households in his area. He said the white families always had good jobs and they would push their children into similar roles, so their future would always be secure.

When asked about the recent data published by Bloomberg, Davidson said: “It is absolutely crazy that we do not have anything to pass on to our kids.

“We need to see people who look like us to show us it is possible but also we need people in places who will advocate for us.”

Mr Davidson purchased a mini-lodge cabin last year, which he says has been a great investment, as COVID-19 travel restrictions created a surge in staycations. The father of two, is keen to teach his own children the importance of creating and keeping wealth and takes his 19-year-old son with him to viewings for houses to add to his portfolio.

He said: “My son is part of my company and it is about putting him in positions where he can learn. My son is very clever and is a big part of my business. I even teach my 11-year-old daughter little bits about what I am doing.

“It is about giving them that knowledge so they can have a bright future.”

Mr Davidson is also ensuring he is encouraging others in the community, he told The Voice, he is hiring many young  ambitious contractors and builders to work with on his projects, so he can hopefully inspire them to become property investors. He said: “It is important for us to help each other where we can and hiring young talent from ss different cultures, is one way I can help.

Mr Davidson joked he doesn’t currently have enough properties to retire but said he is working hard to ensure when he does, he can enjoy it. For some property experts, the pandemic has forced them to change the way they do business and has ultimately helped them to find a new demographic of clients.

Unlimited potential

Viden Property, was started by twin brothers Carlton and Clinton Heron, from north London, four years ago. The family-run business has used social media during lockdown to teach people about the different financial options available to them to secure homes.

Speaking to The Voice, Co-Founder, Carlton Heron, said: “We are serial networkers and would attend property networking events every week, but when the pandemic hit,  we couldn’t do that.

“We turned to social media and used it to promote what we do and our business has grown from it. Most people from our demographic, have told us they can relate to us and appreciate how straightforward we are about getting into property investment.”

Mr Heron said he has seen a lot of interest from younger people who are keen to learn and he described the interest as “inspiring. The brothers, who are both 27, started Viden Property because they realised the property industry had unlimited potential and matched their skill set.

They also knew working in the field would enable them to add a lot of value to their community, something that is at the heart of their business. The Heron brothers, began their journey by getting to know people who were already active in the industry and learnt from them.

Viden Property offer a number of services including sourcing and acquiring commercial and residential sites with development potential, with or without planning. They also assist in purchasing property and selling on behalf of owners.

There are some economic reasons for the lack of home ownership in black community, according to the twins, who are originally from Tottenham. They said there is a lot of caution from the Black community when it comes to seeking financial help, which is stopping many from securing great investments for their families in the future. Mr Heron said: “From my experience people from White, Jewish or Asian backgrounds tend to purchase properties where they can add value and are open to different types of financial assistance.

“With the Black community, there is a lot of hesitancy and caution when it comes to taking out loans and specialist finance.”

According to the Office for National Statistics the average property value in the capital is now £500,310 and has risen by 3.7% in the year to March 2021.

This something Mr Heron is aware of and urged the community to be more flexible about the area where they want to invest. He said: “Most Black people in the UK live in London and we need to consider investing outside the area where we live because unfortunately we are being priced out of the areas we grew up in. If we can expand our radius a bit, we would be able to purchase a lot more for our money.”

When asked about the areas outside of London where Black Brits should be investing, the Investment Consultant, said: “Nottingham and Birmingham are good areas that have strong Black communities. For investment purposes, people may want to consider Burnley, Preston and Leeds, if you want to rent properties and get a good return on your money.”

Mr Heron, said he hopes his family business can inspire new buyers and ensure we will see a significant growth in the wealth accumulated through property in the Black community in the future.

For information on Viden Property  visit: www.videnproperty.co.uk