I think you'll find that it was the government who held down the interest rates and kept the rules slack on the lending rules that fueled the house price bubble.
Why?
The feelgood factor delivered 3 consecutive Labour election victories.
Do you REALLY think politicians get into politics in order to help people and deliver the country to prosperity?
There is a global business cycle and all politicians know this. There are two strategies. In the first you reign in public finances during the expansionary phase so that you are in good shape for the deflationary phase (now) and can increase public spending on infrastructure to help support the economy.
In the second you let public finances rip during the expansionary phase so that the economy enjoys amazingly strong growth but accept that when tax receipts fall in a deflationary phase (now) you will have to cut public spending which further weakens the struggling economy.
Can you see which strategy Mr James Gordon Brown chose?
Do you think that was wise?
Prepare to pay the price for 3 socialist governments; winter of discontent and a depression.