The news that the Government is looking at getting in the purchasing of homes for first-time buyers is not news at all if you are a regular to my programme.

Phil Twyford and Jacinda Ardern told us all this a number of months ago when we challenged them on just how affordable their affordable home pricing actually was.

The classic mistake they've made is they've taken a price and given it a tag.

And making it even more embarrassing is the fact that their original numbers, as they were always going to, have continued to rise.

So $600,000 is now $650,000. And I'll tell you this for nothing, it'll be a lot higher than that by the time the keys are turning to any significant number of new homes.

So the affordable home is only affordable if you have the money. Not if the Government calls it affordable.

The work they did early on found that very few looking for a first house actually had that sort of money.

So what to do? We'll get the government as owner.

The plan is you can take a second interest-free loan, a stake put up by the government or by a bank and backed by the government.

It's not a bad idea, because home ownership is everything in this country. It is the way we save and get ahead.

But the trouble with the way the Government has attacked it, and this is the previous government's fault as well, is to assume you can manipulate the market which by and large you can't.

In a country where supply and demand aren't matched you will see price rises. And eventually, as those prices rise, you will see more and more people dropping off the bottom of the list in terms of affordability. And no amount of government intervention on what an affordable price should or could be is going to change that.

Factor in also the Reserve Bank and their loan to value (LVR) moves. If anything has shaped the market, those moves are it. And I'm not sure that this government plan dovetails with what the bank is trying to do.

And then you ask where the money for this house buying spree is coming from, and the answer is as we got told months ago. It's coming from the same pool they have to build the things in the first place.

And so instantly we can deduce that every cent that is tied up in ownership is not tied up in building - and the building was already in trouble because they didn't have enough money in the first place.

Thus making the claim of 100,000 new houses farcical from day one. These are the cold hard truths coming home to roost.

Their ideological determination to make a home affordable and have every person with not enough money in one might be their ultimate undoing.

The Mike Hosking Breakfast LIVE from London, daily from 6am on Newstalk ZB

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