Re: Too much tax.
Talk of bancruptcy dramatically underestimates the extent of house price increases over the last couple of decades. If house prices were to drop by about 10%, that would be regarded as a crash; 20% would be a major crippling disastrous crash. And yet, even after a 20% drop, most houses would still cost a lot more than they did 10 years ago and a hell of a lot more than they did 20 years ago. Hell, just 5 years after I bought my house, its price could have dropped by 50% and still been higher than when I bought it. That's insane. (That has since been redressed somewhat by 2008's shenanigans. But even with that -- one of the most catastrophic financial crashes in history, apparently, directly linked to mortgages and house prices -- its still more expensive than when I bought it.)
Anyone think allowing shops to be converted to houses is likely to cause a drop of anything like that size? Especially given that so many commenters here have explained that it's already being allowed in their areas, and yet we don't seem to have seen a giant devastating house-price earthquake on the news.