How NZF’s Housing Fund Helps Support the Local Community and Eases Pressure on Councils
With councils budgets stretched and pressure mounting, the National Zakat Foundation (NZF) is helping to alleviate pressure on local authorities by supporting vulnerable Muslims at risk of homelessness. Dr Sohail Hanif, CEO of NZF, explains how the charity’s Housing Fund is delivering economic and social value across the UK.
NZF’s housing fund, part of their overall hardship fund, supplies Muslims in need who are struggling with basic living expenses. For housing, this involves cash grants towards housing-related costs, such as rental and council tax arrears, as well as furniture and moving costs.
Analysis from NZF found that for every £1 of Zakat spent on keeping Muslims in housing and preventing evictions, it has a public economic value of £73. This means for every £1 million of Zakat spent on housing and preventing homelessness, it’s equivalent to boosting the economy by £73 million, which would otherwise fall on already overstretched local government budgets. This allows local governments to focus on other areas of need within their community.
In 2024, NZF distributed £1,046,123 of Zakat through the Housing Fund, helping 1,886 Muslims in need stay in secure accommodation, and reducing the financial burden on councils associated with homelessness and emergency housing.
Dr Sohail Hanif shares: “The National Zakat Foundation’s housing fund plays a valuable role in strengthening local government budgets. By directing Zakat resources toward vulnerable Muslim households who face housing insecurity, the fund effectively reduces pressure on publicly financed social housing programs and emergency accommodation services.
“This targeted financial relief allows local authorities to reallocate limited budgetary resources toward other essential community services, such as repairing roads, improving schools and helping others in need.
“Housing is not just a roof over someone’s head, it impacts all aspects of a person’s life, from their work, their education and their relationships. By helping people stay in their homes, we are giving more Muslims the stability they need to thrive, such as being able to progress to higher education and having strong inter-personal relationships.”
Demand for support continues to rise. Over the past year, NZF have received 49,132 applications to its Housing Fund, highlighting the scale of housing insecurity facing Muslims across the UK.
Shelter report that across the UK, homelessness is at record levels and over 1.3 million households are currently on the social housing waiting list. Charities such as the National Zakat Foundation are becoming increasingly critical in helping reduce homelessness and support local communities where councils can’t.
