I'm not sure I agree; by that kind of logic there should be a law banning two income house holds, working from home, or any other creative way people might derive extra value from there living space surely that drives up the cost of housing as well?
There's no law that says that if you ban one thing that drives up the price of housing that you must ban all others. At some point people must make a judgement about the human costs and human benefits of a thing.