the only thing that is going to fix the property price issue is a greater supply of housing,
Builds will become more expensive because the cost of materials will go up in an inflationary environment.
Most property owners looking in to selling have to consider moving to somewhere else. If prices are over inflated and the cost of borrowing goes up, they will be reluctant to move.
increasing interest rates encourages people not to borrow money.
But to save it, so there is less money chasing the same or fewer goods or services.
Which stabilizes prices and controls inflation.