> House prices aren't that tightly linked to incomes. House prices are more strongly influenced by interest rates and availability of credit.

I believe banks in the UK don't lend you more than 4.5x - 5.5x of your income, regardless of interest rates.

In the UK, lenders are resticted by the regulator - only 15% of their loans can be at greater than 4.5x income.

As a result 5x and 6x income mortgages tend to be easier to get the more you earn.

5x and 6x loans also require lower LTVs

I wasn't making a claim about what impacted house prices the most.

If I was, then I'd say a system where the government basically gives you free money/tax breaks if you buy a home, is the root cause behind the things you mentioned which then drives house prices.

The point is, without fixing that issue, you can't solve it by wage rises.

People who don't even want homes are buying them, either as outright investments that they can sit on for years, or as something they also live in, but need to treat as an investment, rather than a home.

> the government basically gives you free money/tax breaks if you buy a home

Such as? MIRAS was abolished 20 years ago. Homes are arguably under-taxed (no US style property tax), but that's not really a "break".

There is Help to Buy [1].

[1] https://en.wikipedia.org/wiki/Help_to_Buy

Which is not free money from the government. It’s a loan.

It's a loan for the buyer. It looks a lot like free money to the seller, which is where the problem is.

Home prices could be linked to wages through renting. I have often seen mortgage loan monthly payment compared to monthly rent as a reason a buy instead of renting.

Is availability of credit not linked to income?

Increased income means increased servicing ability and therefore banks granting higher loans.