Broadly I have to agree with the article but if anything it doesn't go far enough. It's true "they" aren't making any more land but it's not true that we have a particular shortage of it. What we have a shortage of is land current planning legislation lets us build on.
Anyway, what's interesting about planning as we have it at the moment is that it's one of the few areas of our government where we have highly centralized top down control. Yes, the councils technically have the power but they are implementing rules from upon high that don't leave a lot of wiggle room. The end result is we pay for the same decision to be made in every council and the same problems everywhere.