House prices are rising due to one reason. On estates, historically people move on average every 7 years - to move up, to get some equity out (lots), just on a whim - normally by the wife (.... new bathrooms/kitchens), for image. All that has gone - people are "recessionalised" - staying put, no money, averse to bigger mortgages, in negative equity, etc. So far less property on the market, demand strengthens - prices up ...