Not true. There is no "magic ingredient", mojo or goodwill in a property; its price is equal to its value is equal to the (current) cost of the land, the cost of building it and an element of profit for the parties involved in the process.

Property prices have far outstripped rising building costs and rising margins for builders but this does not mean that some sort of gap has opened up between the constituent costs. The gap is taken up by a rise in the value of the land. This is the element that takes up the slack. If it were otherwise then we would all find ourselves sites and have houses built for ourselves, hence getting a house at not far off 1997 prices. Not easily done I concede but you can't separate this from what you would have to pay for a site with planning permission.

The massive growth in buy-to-let lending has meant that every single property in the UK is now worth about 20 times what you could rent it out for per year, i.e. the reciprocal of the 5% rate at which you have been able to borrow money. Relatively simple economics...