Low-Income Homeowners at Risk of Becoming ‘Climate Prisoners’ as Flood Threat Grows
Climate change is rapidly altering the landscape of the UK housing market, with low-income homeowners in flood-prone areas facing growing financial vulnerability. Researchers at Bayes Business School’s Real Estate Research Center warn that increasing flood risk could soon render many homes uninsurable and unmortgageable, effectively trapping owners in properties they cannot sell or leave.
This emerging phenomenon has given rise to a new term: climate prisoners individuals who are unable to move due to the declining financial viability of their homes. These homeowners, often lacking the resources to relocate or invest in flood defenses, face mounting challenges as extreme weather events become more frequent and severe.
The implications extend far beyond individual households. A rise in uninsurable properties threatens to disrupt mortgage lending, reduce property values, and destabilize broader financial markets. The insurance and banking sectors are now re-evaluating their exposure to climate-related risks, particularly in areas deemed high-risk.
Bayes Business School is expanding its research to better understand the systemic impacts of climate change on the residential property market and associated sectors. Their work aims to inform policy and industry strategies to mitigate long-term damage and support vulnerable communities.
Addressing this issue will require coordinated action across government, financial institutions, and the private sector. Solutions may include investment in resilient infrastructure, reforms to property insurance schemes, and targeted financial support for at-risk homeowners.
As flood risks continue to rise, the urgency of proactive planning becomes clear. Without intervention, a growing segment of the population could find themselves locked into unsellable homes, facing not only the effects of climate change but also economic and social immobility.
