Real Estate Sector Slipping Further Behind In Socioeconomic Diversity Employment
There is a “stark lack” of socioeconomic diversity within real estate organisations, especially in senior roles, and the industry is slipping behind other professional services sectors, according to an independent study of leading real estate companies.
Building for the Future: Socio-Economic Diversity and Inclusion in UK Real Estate found that among those in senior roles, more than half are white males from a higher socioeconomic background, while only 14% are from lower SEBs, with an average of only 22% of employees from lower SEBs. This 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, while female and/or ethnic minority group employees from lower SEBs face “compounded disadvantages.”
The report also says that those primarily or wholly involved in investment management are less socioeconomically diverse compared with those primarily involved in real estate agency.
The research by nonprofit equality specialist Bridge Group and the JLL UK Foundation, with support from Real Estate Balance, analysed more than 10,000 employees across 13 of the UK’s largest real estate companies and explored how diverse the firms are by socioeconomic background, factors contributing to different levels of diversity, and actions to advance diversity in real estate.
Although the report cites “many examples of committed leadership and positive practices” — including apprenticeships as a driver for SEB diversity, targeted outreach to schools in disadvantaged areas, and the removal of restrictive hiring criteria — the study highlighted that overall progress in real estate remained fragmented and “worryingly slow.”
The report also set out 10 recommendations, including raising awareness of the business and societal benefits of SEB diversity, standardising data collection and embedding inclusion across organisational practices.
“This research is a stark call for real estate to redouble its efforts in this area, and to lead the way,” Bridge Group CEO Nik Miller said in a statement.
“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,” JLL UK Foundation Chair Mark Stupples said.
Participating organisations in the research included CBRE, Colliers International, Cushman & Wakefield, Gerald Eve, Grosvenor Estate, JLL, Knight Frank, Landsec, LaSalle Investment Management, Savills, Segro, The Crown Estate and Turley.
