Can anything stop the government-created housing bubble?

Booming prices and slow wage growth should eventually make property progressively less affordable, yet James Moore isn’t so sure

Out of reach? The government has been stimulating demand for new houses without doing anything to encourage supply (Getty/iStock)

You’ll probably be aware that the housing market in large parts of Britain has gone, and I’m going to use a technical term here, bonkers.

Prices have been rising like global sea levels and, troublingly, the latest report by Zoopla, the property website, suggests that they’re poised to go on rising for some time to come (like the sea levels).

The company says this year is on course to be the busiest since 2007, just before the financial crisis emerged to pop the bubble, with 1.52m sales expected and £461bn set to change hands, £145bn more than last year.