Nobody has a solution to the problem other than Mister Market. When people stop buying houses, the prices, as if by magic, will fall, and the banks will suddenly stop requiring deposits and interest rates will fall.
Rinse and repeat.
there are solutions to the problem:
1) mass council house building programme
2) Land Value Tax
3) regulation of mortgages so they are more like America, rather than the way the U.K. mortgage lenders put all the risk on the mortgage borrower