Its not silly, just facts.
We have massive demand and limited supply, its not going to change anytime soon.
At the end of the day this is the case.
Prices won't drop off a cliff as there are too many people/institutions waiting to jump in.
You can't suddenly add millions on homes.
These interest rates will toy with the median house price. But our population is still growing (only due to immigration) so housing is still in short supply.
Add in endless meddling by the government (99pc mortgages, help to buy etc) and you'll only push prices up.
Every one of these schemes only helps the people using it but makes it harder for the next cohort.
Huge mortgage debt is crippling. But in a supply/demand scenario with limited supply I don't see how huge house costs can be avoided.
I'm sure if you suddenly doubled the average salary houses would jump in price and you'd still be left with the same take home.. Just a bigger mortgage.
Unless regulation is brought in to stop BTL and also cap mortgages at 3x salary (as an example) you'll never get a hold on prices. So many people (me included) borrowed the maximum the bank would allow.
If the bank allowed 6x..I, and almost everyone else, would be using that to buy the next rung up. Except it wouldn't be the next rung up. Prices would just increase