I've not got time to write a lot about this right now, but the details of the report commission by the Treasury in to the current state of the mortgage and housing market makes grim reading.
One point the reports seems to be aware of, but his passed the government by, is the current mortgage drought, as the reports author refers to it, will ahve long term effets for the economy.
The commission seems to realsie that people currently renwing their mortgages (I am one of them) are being locked in for three to five years in to higher mortgage repayments which will mean a three to five year curtailment in those people's consumer spending. My own mortgage will be £150 a month higher because of the mortage rates on offer and I would be locked in for three years to this rate.
You have to ask why the government cannot see this is a major problem.