Chris Johns and Jim Power were discussing the relationship between house prices and bond yields on a recent episode of their podcast, The Other Hand. Johns was making the point that house prices will continue to rise - or at least not fall - until such time as bond yields begin to rise, and that this will be the case regardless of what policies the government pursue in increasing housing supply. They didn't really go into this in a lot of detail but it struck me as a point that goes largely unaddressed in the media or by government when discussing housing policy. The general consensus seems to be that more supply equals lower house prices, but is it the case that prices will continue to rise as long as bond yields remain low? Is there any research, articles or books anyone would recommend to gain a better understanding of this relationship?