merry I think you're being willfully blind to the point lurked is trying to make.
You are talking about 'cutting your cloth', but taking out the maximum 25 year loan available when interest rates are at rock bottom, with no particular prospect of increasing your household income isn't cutting your cloth, it is borrowing a vast amount of money on a wing and a prayer." You talk about first time buyers, but it is unclear how this couple would ever be able to afford anything else.
The maximum mortgage term is 35 years. Link
In most professions, there are pay grades with pay increasing with experience. From Googling, it looks like teachers are eligible for pay increases based on length of service and performance Link. So this couple would be able to afford "anything else" the same way as the rest of us - small, incremental salary increases, combined with saving. They might also make improvements to the flat, so its value increases above general price rises.
I'm 30. I bought in 2013 on a salary of £35,000. My flat is in the mythical Zone 2 of SE London. It cost £179,000 for a 700 sq. ft flat. It had been on the market for 6+ months when I bought it, because no-one wanted a grotty-looking, previously tenanted, ex-council flat in Brockley. I can give you the full lived-in-grotty-houseshare-took-a-second-job-to-save-deposit story if you like. A few years on, Brockley has been "discovered" by all the sneery fuckers who wouldn't go near Lewisham back then. I've spent time and money I would've spent on holidays etc painting, replacing floors etc. I now have a beautiful home. All the friends who sneered and joked about where I live, and went on nice holidays because they couldn't afford a place in Islington, have been priced out.
Looking at RightMove this morning, there are pleasant enough 2-bed flats in Catford, Hither Green, Lee etc for £260,000-£280,000 Link, but of course the reaction is Catford! Vomit. I'm saving to live in Brockley.
I believe in cutting one's coat to suit one's cloth, in short. And I'm clearly not a boomer. While there is a housing crisis, there's also a "crisis" of people's expectations in some circles.