Property shortages push prices to 6 year high

http://news.sky.com/story/1240123/property-shortages-push-prices-to-six-year-high


"Toughened mortgage lending rules are coming into force later this month with the aim of preventing overlending to borrowers who may end up having trouble paying back, particularly when interest rates rise".

Why do we tolerate this Housing merry-go-round which affects the economy for all of us.???? One minute the Government is lending to first time buyers on a low income , Banks follow suit and interest rates for savers go down. Then the bubble bursts and people can't sell their homes, face eviction because they can't repay the Mortgage and end up renting at an exhorbitant rate of interest. Foreigners are buying up expensive properties and much of London is owned by them.

Why not have a fixed rate of appreciation for all properties, it would stop short term investors and help those on low incomes.