Labour's plan to produce 100,000 "affordable" homes for first home buyers over 10 years wouldn't deliver one tenth that number of houses, according to Economic Development Minister Steven Joyce.
Party leader Andrew Little has rounded out a week of housing announcements by updating Labour's flagship Kiwi Build policy that would see the government get back into the business of building homes.
"When you don't have enough houses you bloody build some more and that's what we're gonna do!" Mr Little said in a speech yesterday.
Half of the homes would be in Auckland, with prices ranging up to $600,000, and apartments cheaper.
Outside Auckland prices would be between $300,000 and $500,000.
Mr Joyce says Labour is not offering a massive change of plan, "but actually it's a few tweaks of what the Government's already doing and offering up a programme which wouldn't deliver one tenth of what they're saying".
The new state-built homes would be for first home buyers only and buyers couldn't keep any capital gains if they sold within five years.
The $2 billion build would be managed by a new crown entity known as the Affordable Housing Authority.
The short term speculators won't be able to get away tax free anymore- Labour leader Andrew Little
"So what they're suggesting is not very much money for a heck of a lot of houses," Mr Joyce said.
In a bid to discourage speculators, the Government last year introduced a "brightline tax rule" which means investment properties sold inside two years are clearly subject to a capital gains tax.
But Labour would push that "brightline" out to five years.
"The short term speculators won't be able to get away tax free anymore. And It means ending the tax incentives to speculate in short term property gains at the expense of families trying to get into a home," Mr Little said.
ONE News political editor Corin Dann says National doesn't see a role for government to build homes, meaning voters have a clear choice when it comes to housing at next year's election.