House prices doubled in a few years while wages remained much the same. Anyone with a pulse got a loan.
One way bet that houses only ever go up. Houses reached a peak and stopped selling. House prices started going down.
Investors started bailing out leaving the country to pick up the debt.
House prices now 50% of peak i.e. coming slowly back in to line with what they should be inflation adjusted.
Lack of credit, need for deposit is bringing the situation to a conclusion.
A large part of any population are gullible and financially illiterate - we have our fair share here. The media made rising house prices a 'good news story' for people to buy into. Government policy did nothing to help - Housing Associations paying top dollar, Co-ownership limits up to £225k (for those that couldn't otherwise affford a house!), a border with the Republic (and its 'speculators') which took off and had inappropriately low interest rates, criminality and public sector (police/army) generous pay offs. Banks took benefits into account when assessing 'income' - that is, if they assessed it at all. Everyone knew somebody, who knew somebody...................... so that hurdles were easily overcome, and stories of huge 'profits' and house price growth were viral.
Basically an illusion, with a very high rate of attrition, playing out every day and for the forseeable future.
But it was nobody's fault.