Young got it wrong. There is a point around the heat having gone out of our property market - mostly it is stagnant or falling slightly. For the last couple of years people have been unable to get the silly mortgages. People in work paying a mortgage are paying less (though they may be sitting on negative equity and may be earning less). There is pain out there, but it could easily be a lot worse, and there are even some people doing well. Difficult message. Young bodged it. If he had managed an additional sentence saying that there is a lot of hardship for families I imagine his comments would have been considered bland and boring and would hardly have been reported. But he didn't and he broke the egg shells. He came across as out of touch and uncaring - and it is this, not the facts, that sunk him. PR is what matters, not facts.
Young had to go because his comments are unacceptable to the BBC, the fact that most Conservative voters/sympathisers support him is irrelevent! Call-me-Dave has been working on his caring sharing image since he was elected as leader, and he won't let some privileged Tory Grandee ruin all his hard work, even if that means stepping on core party principles.
The last time the Tories were in office they raised interest rates to 15% during a house price crash. Ken Clarke was interviewed at the time and he pretty much said it's not the government's job to bailout homeowners, if they're in trouble, tough. Nobody said a word and he kept his job.
You'd never get away with such a comment now because the New Labour way of thinking has become established practice. It's not that the old school Tories are any different or more "insensitive", they've stayed the same. It's the public, they've been conditioned like Pavlovian dogs to be ultra-sensitive to anything that might offend.
I hope Lord Young gets his job back.