The St. Georges flag, the dragon, st. Andrews cross, the union flag and the ulster cross are all the legitimate flags of this nation, it is not racist to fly them any more than it is for the French to fly the tricolour or the US to fly the Stars and Stripes (which they both do, a lot)
There is nothing racist about having national pride, if anything we fly our flags far less than other nations.
There is nothing hateful about any of these flags, they represent the country that you as a resident are part of, you have ownership over them too, they should not intimidate you!
Britain is, and always has been a melting pot of people from all over the world, a good majority of our families rocked up here at some time be it 50 years, 500 or 1000 years ago, its that diversity that has always made it a great nation - going through a difficult patch just now, but I have faith...