Inspectors said headteacher Menache Moishe Gotlieb had worked hard to raise awareness of groups protected by equality law.
The law includes people of same-sex orientation and who have reassigned their gender.
The school - which teaches boys from three to 13 - had drawn up a strategy on covering equality issues, depending on children’s age.
“Although this is a clear step forward,” Ofsted commented, “pupils do not have enough understanding of the wide range of family life represented in modern Britain”.
The inspectors’ report did not explicitly refer to LGBT people.
Last year the Department for Education lifted a ban on the school admitting new pupils.