7: Housing the next crisis

The UK’s housing market faces significant risks from climate change, particularly flooding, which could lead to a permanent devaluation of properties. With full-recourse mortgages, homeowners remain liable for debts despite reduced asset values, triggering potential economic contraction. This crisis could exacerbate intergenerational and regional inequalities, impacting middle- and working-class families most severely.

6: The debt economy of the UK

The UK’s financialization creates a cycle where rising household debt underpins economic growth, yet undermines financial security. With stagnant wages and rising asset prices, many households rely on debt for basic participation, exacerbating inequality and financial precarity. This self-reinforcing trap threatens economic stability, necessitating urgent policy intervention.