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Interesting looking at this Guardian article from 2006. It typifies all that was wrong during those credit boom years and the mad deluded blindness that was affecting the whole country. http://www.guardian.co.uk/money/2006/dec/16/business.houseprices The sub headline reads "House prices in UK...

Sorry, but you asked you asked a very specific question - whether I thought there are enough houses to cater for the population expansion over the next 20 years. I wasn't sure why you asked it, but I answered anyway. My argument is about whether there is a shortage of housing right now...

No. Why on earth would you want to build houses right now, to cater for those needed in 20 years time?

Just to pick up on this one point.... This "short supply" argument is often stated, rarely challenged and often taken as read. However it is largely a myth (while accepting that this varies between areas). It was used by estate agents, lenders, Kirsty, Phil and everybody during the boom years...

Its called regulation. Would the other parties also have failed to regulate? -probably. That doesn't absolve the previous government of the blame. The financial service commission (created by Brown) fiddled while Rome burned.

... and then there are the Wilsons, who were allowed to buy half of Kent, because the sh1t-for-brains banks did not see any risk at all in lending millions upon millions of pounds to one couple...

And that right there is the source of the boom and bust cycle. As interest rates steadily fall from high to low, people are able to borrow more and more for the same monthly repayment. Once interest rates start to turn up again, or stabilize, it all goes bang. To eliminate the boom and...

Trouble is, it doesn't matter how many graphs you put in front of people as during the 'mania phase' they will always convince themselves that 'its different this time' and this time, it isn't a bubble, its a 'new paradigm'. The favourite argument during the last two housing market bubbles has...

Well its just fine wishing that now, after the biggest house price boom in history, but how many people were wishing that 10 years ago, when it would have been achievable with the right interest rate policies and lending criteria.