Reserve Bank governor Michele Bullock has labelled soaring Sydney house prices a “knotty problem”, urging governments to make these changes to help alleviate the housing problem.

Speaking in Sydney on Friday for The Daily Telegraph’s Future Sydney Summit, Ms Bullock pointed to a lack of supply and workers leading to higher house prices and questioned whether tax laws were playing a part too.

“We need the inputs, we need the cement, the bricks, the wood. We need tradies who’ve got the skills in order to build these things,” she said.

“We need to make sure we have all those resources available and if the economy is running too hot, then sometimes those resources aren’t available.”

Ms Bullock said she was “hopeful” falling interest rates would help lift the amount of houses built.

“The b

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