SIR – Past Governments have welcomed house price inflation as a driver of (some) economic activity, but at a cost.

Inflated prices mean: * Those (often working couples) who can afford to buy take on ever greater mortgages. Others cannot dream of buying, pay silly rents or must live with family.

* The amount of housing benefits increase (paid to more than 75 per cent of social housing tenants in parts of my ward). Linking social rents to private rents and house prices, though necessary, is unsustainable or at the expense of other areas of need.

* Retirement and residential care homes cost more, so as to provide a return on costly accommodation, yet many house owners expect to give inflatedly-priced dwellings to offspring while the state pays for inflatedly-priced accommodation in later life.

Southern Cross partly or mainly failed because it sold the ownership of homes in order to cash-in on the inflated prices – renting back at market rates which residents and the public purse would not, or could not, meet.

What a way to run an economy! At least the bankers are happy with all the cash sloshing about. But that’s another story.

Coun John Hall, (Lib-Dem, Windhill and Wrose), Pennithorne Ave, Shipley