Anyone who thinks house prices only go one way didn't own one in the early 1990's or even as recently as the late noughties.
What's worrying for me is that irresponsible borrowing and property price/rental inflation is still being effectively encouraged because, right now, property is seen as the only way to get any sort of return without significant risk. The BOE is in between a rock and a hard place because if they increase interest rates by any significant amount there'll be countless big losers who can't pay their mortgages and if they do nothing the bubble will inflate further. It's all a bit like what's happening with Greece - policymakers transfixed by the headlights of economic reality. The more I look at what's going on here and around the world, the more I feel we're on the verge of a perfect storm.