I also own a property and I understand owners do not want to see their property go down in value but as you say they are wildy overvalued at present.
I recently sold a very run down Victorain 1 bed room flat fot GBP 175k.
Property built about 1870 so what is the reason for these very high prices. No building costs, needs to be totally renovated.
Surely we need to go back to the time when a house was a home first if the price increased so be it but it should not be an investment.
If you are selling and buying at present no problem , if you are just buying perhaps best to wait , only if you are selling and renting will you lose.
Once this current shake up is finished let us hope prices do not go barmy again , however I somehow doubt it people have short memories.
Not sure what if anything should be done to assist people in real problems , mainly those who purchased in last 18 months or so. I do feel sorry for them , I know the writing was on the wall but the lenders were still thusting money down their throats which in most cases were more debts than they should have taken on.