The UK real estate sector lags behind other industries when it comes to socio-economic diversity, according to a new study.
The independent study of more than 10,000 employees at 13 leading real estate companies, which was undertaken by the Bridge Group and the JLL UK Foundation, with support from Real Estate Balance, found they face a stark lack of socio-economic diversity, especially in senior roles.
The ‘Building for the Future: Socio-economic diversity and inclusion in UK Real Estate’ study also found that since the previous report on socio-economic background in real estate was conducted in 2020, the sector has been outpaced by peer industries like law and financial services in improving socio-economic diversity.
The research found that among those in senior roles, more than half (51%) are white males from a higher socio-economic background (SEB), while only 14% are from lower SEBs.
An average of only 22% of employees are from lower SEBs, which compares with 39% of the total UK workforce, 29% in law and 33% in financial services. On average, 31% of employees attended independent schools, compared with 6.8% nationally.
Those primarily or wholly involved in investment management are less socio-economically diverse compared with those primarily involved in real estate agency.
Although many examples of committed leadership and positive practices were identified the study found that overall progress in real estate remains fragmented and “worryingly slow.”
The report outlines 10 recommendations to advance SEB diversity and inclusion within UK real estate, including raising awareness of the business and societal benefits of SEB diversity, standardising data collection, and embedding inclusion across organisational practices.
Nik Miller, chief executive of the Bridge Group, said: “It has never been a more important time to talk about how class affects people’s prospects, and how businesses across sectors can benefit from more diverse experiences and perspectives in their workforce. This research is a stark call for real estate to redouble its efforts in this area, and to lead the way.”
Mark Stupples, chair of the JLL UK Foundation, added: “I hope that the impact of this research will be to encourage a collective and collaborative response to the lack of socio-economic diversity in the real estate sector. The evidence is clear that action is required, and positive steps needed to ensure fair access into the sector, but just as importantly cultural change to achieve career progression.
“Other professional sectors are leading the way, but given that real estate touches all of our lives, I am confident it can catch up if the sector takes on board the evidence and the practical recommendations provided.”
Sue Brown, managing director of Real Estate Balance, said: “Real Estate Balance has been delighted to support the launch of this important new research. I’m greatly encouraged by the study’s 10 recommendations, which provide a roadmap for real estate organisations and the sector to benchmark performance and accelerate change. Of particular note is the positive impact that increased socio-economic diversity can have on other EDI characteristics such as gender and ethnic background.”
