I rarely sit at dinner party up where the guests gush with enthusiasm at the rising price of either petrol or food. I never hear, "You will not believe it but I when I filled my car up the price of a gallon was 10% lower and that was only last week!. I still have half a tank left so I really timed that refill perfectly!". They do however bang on all the time about how the price of their house has gone up 10%. At this point I usually tell them to cash in and move their families to a tent in a discreet and unpatrolled part of an english forest. The profits should afford them a first class commute to work every day and a luxury portaloo. This does not usually get a sensible response from the majority who feel somehow THEY uniquely have become far richer as a result of house price appreciation in the city they intend to live in for the next 20 years. Their wealth is defined in dollars or pounds not in how much space they can afford.
This illusion of economic progress which relies on the value of our houses going up is probably the biggest con our governments have perpetrated. And we have fallen hook, line and sinker. Just as governments publish dubious research on how it is healthy to get inebriated with 3 units of alcohol every night (keep the populace merry, and they will not notice the poor job we are doing), they have persuaded the country to remain punch drunk watching the value of their houses inflate. And hence a huge proportion of the nations economic output is devoted to producing clones of Kirstie Allsop for every one of our five hundred channels. And that is all the nation seems interested in watching. That and the National Lottery of course, essential viewing for those still aspiring to get onto the housing ladder.
Only in China it seems the government is prepared to take serious steps to stem the the property bubble by reducing credit (Chinese property tax). Their government has taken the radical view that more and affordable housing is preferable to expensive and scarce housing. In the UK, the BOE has cut rates to 0 to assist foreign speculators and property developers to deliver the opposite result.
Everyone in UK should be looking to purchase more space for their money - not less. Rapid house price inflation means that over time people have smaller places to live in, and rapidly. That surely is something neither the citizens nor its elected government can consider an economic good.