The rules aren't preventing potential buyers from buying, a lack of available housing and increased population numbers are what's preventing them.Because if more people can actually buy homes, developers will build more homes to meet that demand.
I have seen estimates that the Central Bank rules are preventing as many as 500,000 potential home buyers from buying. In other words, the rules are restricting the “realisable” demand.
The demand and higher prices are already there to entice Developers to build...if they could. A lack of construction workers is one of the main stumbling blocks (excuse the pun).
We are paying a lot of construction workers (along with other categories of workers here) to stay at home because of our generous social welfare system. A couple of days working for cash in hand and they are cleaning up.
We encourage our school leavers to go to college, some for meaningless courses, rather than go into trades. So the number of apprentices is miniscule.
Despite immigration continuing at a rate I believe this country cannot cater for, the numbers of construction workers amongst the immigrants seems to have fallen off a cliff. With economies in Eastern Europe having picked up, the endless supply of young/middle-aged men we saw coming here from 2002-2008 and going into the construction industry has all but stopped.