Likewise, I was surprised to learn that you guys in the US had access to such long term fixed rate mortgages! I'd assume that your system promotes a greater accumulation of debt and thus pushes up house prices.

Ten years ago the average UK house price was ~£170k, and now it is sitting at around ~£290k (a ~70% total increase, or ~5% / year). Which doesn't seem so bad, until you realise that average wages have only risen by ~20% in the same time period.