House building

When house prices were rising the ever capable (not) Mrs Balls said that this was because there were not enough houses and was a sign of the economic success of the government.

Now that house prices are falling does that mean that there are too many houses and that this is a sign of the economic failure of the government?

Or is it more likely that house prices have risen so much because lenders relaxed their lending criteria to such a degree that they were lending up to 6 times incomes with no proof of the income required and no proof of how the mortgage was going to be repaid.

Since the criteria has been tightened slightly house prices have started to fall. If the criteria is tightened further expect the much anticipated housing crash to be here.