I'd reckon it's a very small risk. House prices would fall a bit if more land were released for housing. But looking at what happened in the US it might be good to leave things as they are here.
But I don't think lack of land is a major reason for house prices anyway. There is no lack of land...
I really don't understand what population has to do with it.
If there are 8 families on an island, and only 6 houses on that island there is a housing shortage. If there are 300 million somewhere else and there is bulk easy credit for all and no subdivision restrictions and people build way...
