[mendelsd]

Simon Wren-Lewis argues that increasing supply won't help so long as there exists an arbitrage between rental yields and interest rates. Wealthy people will just outbid everyone else for the increased supply: https://mainlymacro.blogspot.com/2018/02/house-prices-and-re...

Richard Werner points out that the mortgage lending, with associated house price inflation, caught fire in the UK after Thatcher eliminated "corset" credit controls. That may be key to sorting the whole mess out.