On the demand side there is literally a policy lever that the Central Bank can pull tomorrow that would lead to a material increase in housebuilding without compromising financial stability.
Would it though?
The same labour supply constraints would be there.
The same planning delays would be there.
The same financing costs would be there.
The same dysfunctional and grossly inefficient construction sector will still be supplying the houses.
All that will happen is more money will wash over those structural problems, hiding them in a sea of leverages cash.
The reality is that around the same number of houses would be built.
The same people would end up owning them.
They would just have paid more for the same house because of the increased income multiple allowed when borrowing.
Increasing the amount that people can borrow is like everyone on the terrace of a football stadium going up one step thinking they will have a better view. The reality is they won't, they'll have the same people blocking their view, they'll just be higher up.