.svg)
Did you know: 76% of British Muslims feel Islamic Finance products are important to them. Respondents stated that they ‘could enjoy such financial products free from the guilt of engaging in unethical practices or sin’.
The Study
StrideUp has embarked on an insightful research journey to understand the perspectives of British Muslims regarding Islamic Finance and its Home Purchase Plan (HPP).
We surveyed 200 British Muslims over 18, including both homeowners and aspiring homeowners. The study found a clear trend: 76% of UK Muslims feel Islamic finance options are important to them.
Sakeeb Zaman, CEO at StrideUp, said the study had “confirmed the importance of Shariah-compliant finance products” for the Muslim population.
“A key differentiator of Islamic finance versus conventional products is the absence of interest – which is prohibited in Islam,” Zaman commented. “Most Muslims see it as a more ethical option which aligns with their values, and our research points to these products as being highly regarded in the community.”
The British Muslim Landscape
The UK is home to over 4 million Muslims, making up around 6.5% of the population, with 2.6 million being 18 or over. Of the 2.6 million adult Muslims living in the UK, 49% are homeowners and 4 in 5 of these homeowners have a home finance product. This means that over 1 million British Muslims own a home with a home finance product. 44% have never owned a home but would like to in the future, and are thus potential first-time buyers.
Preferences for Islamic Finance Products
76% of respondents feel that Islamic finance products are of importance to them, with 41% saying they are ‘very important’. However, half say they know little to nothing about such products - clearly a gap in knowledge has resulted in people missing out on products that are of importance to their faith.
Why Islamic Finance?
This begs the question - why? What features of Islamic finance products are most important to British Muslims?
Unsurprisingly, the top differentiator for 44% of respondents was the absence of interest, or Riba.
Riba translates approximately to usury - according to most scholars it is considered an exploitative and unjust practice, and is therefore strictly prohibited in Islam. StrideUp’s respondents stated a desire to use Shariah-compliant financial products so that they could live free from the guilt of engaging in unethical practices or sin.
Home Purchase Plans (HPPs)
Home Purchase Plans (HPPs) are a Shariah-compliant way individuals can get financing on a home - they are an Islamic alternative to a traditional mortgage. HPPs are gaining significant interest in the world of Islamic Finance, with a large majority of respondents expressing a preference for them over traditional mortgages.
A significant obstacle preventing the mainstream adoption of HPPs is the lack of readily available information. About 35% of those wanting an HPP doubt their ability to find one themselves.
This is a gap StrideUp is passionately working to bridge. Our goal is to demystify Islamic mortgage alternatives, educating and providing access to Home Purchase Plans as a viable and ethical financing option.
If you'd like to know more about HPPs, click here.
So what does this mean?
The key takeaway from this study is that there is a real desire to learn, access and engage with Islamic finance products - The British Muslim population are well aware of the benefits of such products.
The real hurdle to overcome is the lack of useful information available to the public about how these products work, and where they can get them from.
This is where StrideUp strives to make a significant impact - we are dedicated to clearing the smoke surrounding Islamic mortgage alternatives. We've crafted a comprehensive advisory program to ensure that every customer understands their finance product, and how it complies with Shariah principles.
Join StrideUp’s efforts to help spread the word by sharing this article, or some of our other educational blogs. It’s time that Britain woke up to Islamic Finance!
Interested in a StrideUp HPP?
This article is the first of StrideUp's Educational Blogs. If you are interested in seeing more content like this please follow us on LinkedIn, Instagram or Facebook.