I have just been researching sold prices of properties around us in an assessment of whether to invest in a BTL flat.

The first chart shows money created by banks (from Positive Money here), the second from the Dept of National Statistics shows house prices.

Coincidence – I think not !

So, house prices are dependent on money supply. The fall in supply from 2007 to 2009 should have induced a pro rata fall in prices. QE and forbearance have prevented this, and will probably continue to do so while the govt stabilizes the UK banks.