Is there a problem with the UK economy?

Assuming you are still working and earning the same of slightly better money how can it be that if your house was put back on the property market (assuming it has made money) you would not be able to afford to buy it? I.e i paid £97000 for my flat 5 years ago, its now worth £210,000 because of the increase in property prices. I would not be able to afford to buy it at the new sale price as no lender would lend me enough money based on my wage! Surely this is an indication of an economy going bad? Surely wages should rise in line with the property market?