So I take it that you are suggesting that to keep house prices...

So I take it that you are suggesting that to keep house prices reasonable more supply of housing could solve the problem.

In practical terms there would be two ways this to happen. First is the private sector, which is already happening (new homes are getting very scarce on the ground so prices are escalating) and the public sector.

For governments to manipulate market supply would mean borrowings via various debt instruments pushing up out gross domestic debt.. So the government builds a property and sells it to buyers who fund the purchase with bank money. The government properties become sort after and long waiting lists appear. It's obvious that it could be better to buy a home on the private market than to wait the 3-4 years lead time for land development and construction. Private developers scale down their development programs and Wallah, a property shortage materializes.

Might end up in a big mess. It's been proved so often: don't mess with market forces. Your original intention might have nasty unintended consequences