If governments such as those influenced by Bush and Brown use housing as a way to gain popularity and political muscle, they will again sow the seeds of financial disaster. The value of houses needs to grow in line with the ability of income growth to sustain mortgage payments that actually wind down individual debt over time. Thus, we can see that it is beneficial that within a lifetime a household pays off the mortgage.
It's very easy to raise house prices by artificially creating a market with excessive growth in money supply. One simply engineers a money based demand ahead of what would occur naturally over time with a moderate demographic expansion and normal growth of incomes. Moderate and normal can be estimated. We can all see when peoples purchases of property are pushed forward in time because they panic that they will not be able to afford a home. It is sheer nonsense that this should have happened in the United States and Britain. It is sheer economic incompetence! It is the fault of the FED and the Bank of England and other regulatory entities. Don't blame the banks. They always are predictable in their behavior. What happened was regulatory failure!
http://www.nytimes.com/2010/08/23/business/economy/23decline.html?src=me&ref=general
Will ye no think kindly on those who would be your friends! May the sun shine with your thoughts, today, and happiness grow in your heart! May you allow yourself some peace of mind.