There aren't any small businesses anymore and for good reasons. The mom and pop shops are inefficient. They do not employ the highly efficient operational system that big businesses can employ so all your coffee shops are now starbucks or some other franchises.
>Also these higher prices skew the economy.
Pricing is how an economy works. It is the messaging system communicating changes in demand/supply balance. If it is 'skewing' the economy in the sense that it causes changes, then it is working as intended.
>When people are tied up in these ever increasing loan/income ratios
There is only so much land to go around so if you want to use a particular piece of land that is highly desirable then you ought to outbid everybody else.
>I believe we should look to ensure affordable housing for owner occupiers.
the solution to this is georgian land value tax. There is no reason otherwise to ensure 'afforable housing for owner occupiers' except your personal belief that society should subsidise a particular class of property ownership whereby the owners use the property directly. What is going to happen is that people who cant afford to own a house (or dont want to borrow money from banks to buy one) is going to have to pay the tax for renting.