Affordability is always important, and for a long while prime zone 1 has relied on there being far fewer homes than people earning well over median. There was no pause in London from 2009 to the peak in 2014. Homes are still pricing at the same 2009 to 2014 trajectory for lots of motivational reasons most people can work out. They are rightly struggling to sell.
Interest rates are the key, although Brexit may reduce the gap between number of homes and high earners. When rates fall from 6% to 1%, it's tempting to think you can afford more. You however can afford the same place at an inflated price, because everyone can, so you just end up paying more for the same, as you bid each other up. Of course the rungs on the ladder also become further spread so you have to pay even more.
Last week the BoE asked our banks to increase their reserves by £11 bn, and tightened mortgage lending, reflecting increased debt default risk. They are remarkably shy of touching interest rates, even now when the US has signalled clear intent. After all Mr C is employed by HMG... Most people can probably also work out why our leaders might wish to mimic Japan's economic fortunes, however there we are.
If by some hitherto unseen good judgement, our leaders do the right thing for future generations, rather than mimic Japan, those who have increased debt through choice, rather than grabbing the decade of opportunity to clean up their financial lives will have to settle the bill when it arrives. Those who have been helping out for 10 years by paying the bill for others' debt lifestyle choices cannot be expected to weep too much.