The UK Housing Market faces many significant problems including:

1. Shortage of Supply, especially in certain areas like the South East. The shortage of supply has helped increase house prices making them unaffordable. It is has also made the housing market unaffordable. 
2. Propensity To Boom and Bust. The UK market shows a worrying tendency to boom and bust. Rising house prices benefit many, but, falling house prices have the capacity to move the economy into recession.
3. Mortgage payments are big % of disposable income. The high cost of houses and the desire to get on  the property ladder means many homeowners spend a high % of their disposable income on mortgage payments. This makes them susceptible to changes in the base rate and reduces living standards
4. Lack of Affordable rented accommodation, especially in certain areas.
5. House prices to earning ratio has increased to more than double long term average, increasing scope of a house price crash.