Pipbin it is madness if you compare London prices with prices outside the M25 (apart from Oxford and to some extent, Cambridge). But London is another country now and people will happily pay £1.1M for a small flat in St John's Wood. Because crashes, bubbles etc., come and go but for the last 40-50 years the general rule of thumb in London is that within Zone 3 your property tends to double in value every decade.
One of the reasons that first time buyers are down in number countrywide is because lending criteria have changed so dramatically since 2008/9. (Some of the changes were wise, to be fair.) But in wishing for a London crash, you are actually wishing for a countrywide crash as that is what will happen, as it did the last time. The difference is much of the North has still yet to recover and now rather than affordable housing, getting a mortgage is harder than ever.
I can see how it is a circus sideshow to some, but if you have lived in London for 15+ plus years and have been on the property ladder it's just business as usual. Once Crossrail is up and running, it may take some heat out of the central prime prices, but all I can see it doing is sending places that weren't that well connected before through the roof. Once wages catch up it can only fuel this further.
Like someone said upthread, people were warning of London property crashes in the 70s, 80s, 90s and London just keeps on going. Like New York, it is a world city, and people always have and always will want to live there, whatever the cost. Moreover, it is worth remembering that we always end up with a London centric government full of people careful to feather their own nests - they will do their utmost to avoid a London property crash unless it means they can speculate and make another fortune once they see to it that prices go crazy again, as they always do.
I understand why people think they want a crash. But after crash always comes boom, and nature and bankers abhor a vacuum.