Key questions Labour's housing policy
Prime Minister John Key (file)
Labour can't build houses in Auckland for $300,000 as promised, Prime Minister John Key says.
Labour leader David Shearer has released a plan to build 100,000 homes to solve a problem of home affordability and says it is possible to build houses in Auckland for $300,000.
The private sector will build the homes, which will be sold to first-home buyers, and bonds will be sold to help fund the scheme.
"He can't do it," Mr Key told programme Q+A today.
The price implied a land cost of $50,000.
"You won't find a section in Auckland for $50,000," Mr Key said.
He said the cost of housing was an issue in New Zealand and in Auckland where prices had been rising.
The release of land would help address the issue as would reform of the Resource Management Act and reform of the building sector.
Mr Shearer said his party was targeting Auckland, Tauranga and Queenstown where home affordability was a real issue.
He said the government had to intervene because not enough homes were being built.
"What we're going to be doing is intervening where there's a market failure. If the homes were going to be built we wouldn't have to intervene," Mr Shearer said.