http://www.theguardian.com/business/201 ... boom-crash

I wonder what odds you'd get

How are they going to stop it?

They can't raise interest rates without crippling the economy.
They can't raise stamp duty as that would put people off buying and selling all together (it's already a problem. Not enough houses on the market).
I guess you could insist in larger deposits, but that would only affect first time buyers and probably just houses at the cheaper end of the market.
In London you often see large Asian families living together in one big house, with that many incomes to help pay for it, prices there could go up for quite a while.

All they can do is massively increase the rate at which houses are built. Something builders and politicians are always talking about, but never actually do.
At the end of the day, supply and demand of houses and supply of mortgages are always the main issues here.

I guess the new tests for issuing mortgages might help. Don't they look at you finances in more detail to see if you can cope with an interest rate rise now?

Indeed they do - clickety. At the moment lenders appear to be saying they'll use a 6 -7% interest rate figure in the stress test. That would be a 2-4% rise in mortgage rates compared with current levels.

i believe the biggest problem is 'buy to let'

which has created a 'massive' market for the rental sector for private 'buy to let' buyers that pushes out first time buyers ...