We need more housing, and we need tighter rent controls -- it should be illegal to charge more in rent than 75% of the interest on an equivalent mortgage on the property at its assessed market value, and rents should be subject to an annual review. Nobody should be making a profit by renting out a house that they haven't finished paying for, for more than the total of the interest and repayment on the mortgage, to housing benefit claimants, at the ultimate expense of the taxpayer. And it should be an offence intentionally to make a person homeless without an exceptionally good reason.
New housing also needs to be built with energy saving measures from the outset; improved insulation, air source heat pumps, solar panels, sustainable (natural, or recyclable artificial) materials, combined heating and power, biomass heating, ventilation systems with heat recovery, best use made of natural light &c. Greater adoption of energy-saving and renewable-energy devices should mean that prices should decrease. And fossil fuels are not going to get any cheaper.
But most of all, we really need to get rid of the terrible idea that houses must always increase in value, forever. Between me buying Montoya Mansions in 1996 (when houses were cheap and mortgages were expensive) and making the final payment in 2010, the value of the building had quadrupled -- but my wages had barely doubled, and that had involved a change of job. And even if I had sold my own place, I would still only have been able to afford another two-up, two-down terraced house like it, or maybe a three-bedroom semi in one of the less-desirable areas of Town, with the money I got from it.
A major contributor to the financial crash of 2007 was the deliberate lending of money to people who they knew could not afford to pay it back, knowing that the house would have increased in value by more than the costs incurred in terminating the agreement and evicting the unfortunate buyers.