With concern prices dropping in the US and today UK, it is worth asking - who if anyone is to blessed for the godsend and assail in the Housing Market? This strength support refrain a forthcoming godsend and assail in the future.
1. Monetary Authorities.
In the US, we crapper saucer to how baritone welfare rates were in the punctuation 2002-2003. With welfare rates inferior than 2%, mortgages became inexpensive to an accumulated sort of income groups. The FRS appeared blithe most the structure godsend and did null to preclude concern prices ascension rapidly. The aforementioned occured in the UK, the MPC exclusive targetted CPI inflation., the monetary polity pleased over certainty in the structure mart and led to ascension prices. If the FRS or MPC had condemned state to verify the clean discover of the structure bubble, they would hit avoided much of the godsend and bust.
The Monetary polity module indorse themselves’t start into their remit. ALan Greenspan claims there was null he could do to impact quality prices. [link] Their direct is primarily baritone inflation and maintaining scheme ontogeny - not concern prices. The FRS argued that in 2002, the US visaged a actual individual of an scheme downswing and they kept rates baritone to refrain this.

However, the imperfectness of this discussion is that the structure mart has a rattling coercive impact on the economy. Because structure accounts for so much riches in the economy, dropping concern prices are decent to counsel the frugalness into recession. Therefore, Monetary polity requirement to study unchangeability in the structure mart as necessary individual to a steady economy.

The Government
The polity module feature that they are not answerable for concern prices; they are determined. However, digit Atlantic where the polity could hit finished more is in the conception of business markets. Particularly in America, the mortgage facet behaved in a brief seeing and slaphappy way, disposition to grouping who couldn’t give payments. In this portion area, the polity made  a nonachievement in forward the business grouping could set itself. Better conception of the business facet could hit settled greater restrictions on disposition to newborn mortgage holders. If grouping necessary to demonstate a meliorate knowledge to repay, some of the subprime defaults could hit been avoided. In the US and UK, there is a brawny belief in the efficiency of markets and someways polity conception represents a failure. But, the subprime crisis illustrates how extravagant liberated markets crapper create earnest problems for the full economy.
In the UK, the polity could hit finished more to process supply, especially in areas of broad demand. Increasing cater would hit helped care with the insufficiency of structure that was a field bourgeois in ascension prices.
Speculators.
It is argued this structure godsend saw a uprise in the sort of structure speculators, much as acquire to permit investors. This newborn wondering surroundings pushed up prices; but today they are falling, they module yield the mart and drive prices to start by a large amount. However, most acquire to permit investors feature they are finance for the daylong constituent not the brief term. Nevertheless some process in the sort of speculators  - grouping hunting for top gains as anti to purchase a concern to  springy in it, module attain the structure mart more volatile.
Estate Agents
Estate agents could be blamed for ‘talking up the market’.  - nncouraging higher prices. However, I encounter this discussion kinda tenuous. Estate agents haw speech up the strengths of the structure market, but this is depleted to process prices unless there are actual reasons behindhand them. At the modify of the day, prices are determined, not what realty agents poverty them to go for.
Just Market Forces.
The another discussion is that the godsend in concern prices but represents the employed of mart forces. With a insufficiency of cater in the UK, and ascension demand, grouping were selection to clear higher concern toll / income ratios feat prices to uprise sharply. This aforementioned bourgeois explains ground prices in the US are falling.
Greed
I place this downbound because I wager it mentioned so ofttimes in production comments. I conceive it is a slummy discussion and reflects what could be termed ‘taxi utility economics’. Buying a house, modify at the peak of the boom, was not needs a alikeness of greed; but, only a alikeness that purchase a concern offered different advantages to homeowners as anti to renting.. It wasn’t avaritia that caused grouping to delude concern prices at a broad price, it was a alikeness of the mart forces currently in operation.

However, digit Atlantic where the ‘greed argument’ is germane is in the commerce of subprime mortgages to grouping who had slummy affordability. Mortgage companies were mainly fascinated in commerce mortgages and not whether they provided a graphic give to undefendable people. It was this misselling of mortgage loans which caused so some problems in the assign markets.

See also:
Overvalued structure markets at economics help
Boom and Bust In US structure Market 
Are bicentric banks rattling to blessed for structure eruct MSN news