this is the real issue we need to slowly de link houses from the economy, over several decades. in the mean time they should allow cheap housing like tiny house craze which is happening in other countries.
Slowly affordable housing should be a right not a commodity , that however doesn't mean dream homes super cheap, it just means the bottom end of the market really should cost peanuts.
However, we don't want to build houses that in normal times nobody would want. By that I mean shoe boxes. There should still be minimum standards for space, lighting, thermal efficiency, etc.
I agree that there should be housing for every budget, with the above caveat in mind.
Inheritance is only an issue because we have a non-functional housing market, and because we have employers paying sub-standard wages, to the point where the state has to intervene with top-up benefits.
Failing a short, sharp shock (a housing crash), then we need to address the demand side first.
In the current situation, where prices can only rise, demand tends to infinite, because people are treating housing like stocks and shares. Even if you don't intend anybody to live in a property, speculating on the increase in value can pay off.
And it should be obvious, that if you have two vacant properties, and two potential owner-occupiers ready to buy, that the demand and subsequently the price is increased by allowing a 3rd party (BTL landlord or speculator) to buy one or both of them. What could have been three home owners can become one + two tenants. And by helping house prices to rise, the BTL landlord can then justify increasing rents too! So not only does he ensure more people find home ownership out of their reach, they end up paying ever increasing sums - over 50% of earnings in many cases now - to the landlord. Win/win for them.
I don't see any way to fix this without reducing demand first.
Even if we could build enough houses - and it's blindingly obvious now no party can; not Labour, not the Tories - demand is effectively insatiable. And it's not to do with immigration or over-population, but speculation and treating houses as investment vehicles.
I can tell you right now that down here we're building thousands and thousands of new houses over the next few years (7 thousand in my area alone by 2030). You can't drive 5 minutes in any direction here in Cornwall without see a new housing estate going up. But probably less than 50% of these are being bought by owner occupiers. On new housing estates you can simply tally up all the signs saying "TO LET", and see it for yourself.
Fix demand. Kill property speculation. Kill BTL. It's the only way to be sure. For starters we can get rid of foreign speculators buying up property. Why should we let so much rent money leave the country and find its way to Russian billionaires, Asian investors, etc? It's all so very wrong.