Construction needed to solve Auckland property 'fiasco' - Labour

The survey report urges policymakers to increase Auckland housing supply, invest in infrastructure and counter restrictive red tape that is adding up to $110,000 to the cost of new dwellings. Photo / Brett Phibbs

Labour says a massive building programme is needed to fix a "fiasco" in Auckland's property market.

Labour's housing spokesman Phil Twyford told the Q&A programme the rest of New Zealand was "paying the price...for the Government's failure to fix the Auckland housing crisis."

He told TV One National had blamed bankers, the Auckland Council, and the Resource Management Act for not boosting development.

"They've done virtually nothing."

He said more medium-density housing was needed in the city.

Mr Twyford said Labour would crack down on housing speculators and ban foreign buyers from buying houses in New Zealand. He also said a "massive, government-backed building programme" was needed.

Minister of Building and Housing Nick Smith said "given the level of demand" the Government had agreed to speed up housing delivery in Auckland.

He said Aucklanders were struggling to find houses for less than $550,000.

Dr Smith said house prices, wages and interest rates were the three main factors affecting housing affordability.

"I think house prices in Auckland are going up too fast," he told TV One.

The Government fast-tracked the building of a further 1000 houses and apartments at Hobsonville Point.

About 300 of those would cost less than $550,000.

$550,000 is the maximum price the Government agreed on for houses at the development to be categorised as "affordable".

Since earthworks began in 2013 at Hobsonville Pt, 716 homes have been sold, only 157 for less than $485,000.