Is overcrowding to blame for high house prices?

Some experts claim population density explains high house prices in the UK. But does it?

American humorist and satirist Mark Twain once remarked: "Buy land; they're not making it anymore."

This was Twain's witty reference to the law of supply and demand, which states that when the supply of an item is squeezed, but demand remains healthy, then its price rises. Likewise, over-supply or falling demand causes prices to fall.