Stats support John Key's house price claims under Labour

A data set released by REINZ - median national sale prices - does support the Prime Minister's house pricing claims. Photo / Mark Mitchell

The Prime Minister has been accused of lying about housing price increases under Labour - but figures support his often-repeated claim.

John Key was called a liar after an exchange with Labour leader Andrew Little in Question Time Tuesday.

Mr Little asked what effect the Government's new rules on taxing capital gain on residential properties would have on the Auckland housing market.

In response, Mr Key repeated a claim he has made in recent weeks - that house prices doubled under the previous Labour Government.

That prompted Labour's housing spokesman Phil Twyford to tweet that the Prime Minister was repeating the lie that house prices went up more under Labour than under his own Government.

Mr Twyford referred to statistics from the Real Estate Institute of NZ (REINZ) that showed its Auckland housing price index rose by 77 per cent during the Helen Clark Labour Government, and 87 per cent under the current National Government.

But another data set also released by REINZ - median national sale prices - does support the Prime Minister's statement.

Under Labour, the national median price rose from $172,000 in November 1999 to $337,500 in November 2008, a 96 per cent increase.

The national median price has since gone up another 35 per cent under National to $455,000.

Mr Twyford told the Herald that he stood by his criticism.

The Prime Minister was being deliberately misleading by referring to nationwide prices in responding to questions about Auckland prices, without saying he was using nationwide figures, Mr Twyford said.

On Monday, for example, Mr Key said, "they [prices] have doubled under the previous Labour Government. It's not new territory, and it's not unique to Auckland, it's actually true around the world in major cities".