The rich of course will continue to use their capital to skim the profit and secure their status, and the poor will continue to vote in councils that provide social housing and benefits.
I'm one of those who is in the middle and work; I rent in an up-and-coming area (i.e. people look down on it until they come here) and rent is going up 8 times salary. We are already at rent being 30% of combined salary.
I won't be in a position to get social housing, so I'll be forced to move in a few months either further out (so travelling will take longer and be more stressful, and the working day longer) or move somewhere less appealing.
Property in London is controlled by the super rich who realise its easier to have their current investments increase in value by lack of supply than it is to fund property development. The shortfall in housing in London will be one million homes by 2022! The free market is supposed to mean that supply will rise up to meet demand where possible.
The little property development that does go on is usually done by block selling hundreds of apartments in new builds off plan to investors from Asia/Nigeria etc. who in turn get them rented out, or insane apartments that are sold to Russians and Arabs for £100m+ pulling all other property prices up.
I think that early stage tech entrepreneurship in London will be a rare thing unless you can live in your parents house and live like a student in the near future, or you will end up giving away so much capital just to survive.
The more I read about Berlin the more I see it as being the future of tech in Europe; creative, cheap property and offices (in comparison), intelligent people and cosmopolitan.