What's happened
Homeowners in shared-ownership schemes are facing soaring costs, with many spending over half their income on housing. Meanwhile, uninsured homes are becoming more common due to climate change, raising concerns about their market value and investment potential.
Why it matters
What the papers say
According to Shane Hickey in The Guardian, residents in shared-ownership properties feel trapped by rising costs, stating, 'some residents face annual charges of more than £5,000 a year.' This sentiment is echoed by Felix Salmon at Axios, who highlights that 'the number of uninsured homes is in the millions, and rising fast.' Both articles emphasize the urgent need for consumers to reassess their financial commitments in light of these challenges.
How we got here
Shared ownership was marketed as an affordable path to homeownership, but rising service charges and mortgage costs have left many residents financially strained. Concurrently, climate change is increasing the number of uninsured homes, complicating the housing market.
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