The UK housing crash is over

At least according to National Association of Estate Agents. Home sales are at their highest level since October 2007, the peak of the bubble.

Peter Bolton King, the chief executive of the NAEA said:

"Six months ago people were talking about how the British people's attitude to owning property had changed in the recession. The NAEA always said that this was nonsense, and that demand for property remained strong, but confidence in the market had gone. These figures show that this confidence is returning."

So here we go again. It looks like the bubble is about to be reflated. It took a trillion pounds of taxpayers money, a near zero bank rate, and the central bank printing cash, but eventually the crash petered out and prices are on the verge of rising again.

This is the ultimate objective of economic policy - house price inflation. Keep the middle classes happy, get them to spend and borrow, and keep everyone else in employment.