The creation of major asset bubbles exemplified by the rising costs of housing, is a consequence of deliberate Tory government policy geared towards satisfying the asset diversification needs of the super rich rather than meeting the human need for homes for ordinary people to live in. In other words, the key motivating factor shaping government housing policy is not to end the housing crisis, but to bolster the investment opportunities of the rich which will make it worse.
Britain is in the grip of a housing crisis. But contrary to some Daily Mail speculators, the bricks and mortar economy is not going the way of Japan, circa 1990. Economist, Neil Wilson, explains why the same economic and political forces suppressing Japanese prices will keep British prices artificially inflated for the foreseeable future.