House prices are the UK's version of "the spice must flow". The whole Ponzi scheme is dependent on that market, as there isn't much else. Too big to fail.
Specifically, concern for house prices in a really myopic way. It's 'preferable' to hamstring the place you live in than to turn it into somewhere with a functioning economy that people want to live in.
If it makes you feel better, it's the same in the US. Some cities self destruct in pursuit of maintaining real estate prices. Of course, once they self destruct, prices plummet. Nobody considers that part.
