Labour runs tape over house plan

Mr Key said the policy was "not a policy, it's a pipe dream". Photo / Mark Mitchell

Labour's housing spokeswoman Annette King says National was promising to deliver three and four-bedroom homes for less than $485,000 at Hobsonville despite claiming Labour could not deliver the same sized homes for less on cheaper land.

Prime Minister John Key yesterday again scoffed at Labour's policy to build 100,000 houses after Labour's leader David Shearer conceded the promised $300,000 would only buy a small apartment or terraced unit in Auckland - not a family house.

On Sunday Mr Shearer said that four-bedroom homes could cost up to $550,000 in Auckland - but yesterday he revised those figures down again, saying four-bedroom homes in Auckland could be built for "in the $300,000s".

Mr Key said the policy was "not a policy, it's a pipe dream".

"Their answer is to borrow money and promise people you will get a house for under $300,000. But when they wake up - BOOMFA! - it's a one bedroom bedsit in the CBD."

However, Ms King said new information on the "affordable housing" National announced at Hobsonville Pt included four-bedroom homes for less than $485,000.

"That is four bedrooms for less than $485,000 at Hobsonville, the dearest land available at the moment. How can the Government build their 600 affordable homes at Hobsonville but argue that we can't build for less than that when we are doing 10,000 a year?"

Mr Shearer yesterday tried to back up his costings of a four-bedroom home for less than $400,000 by releasing information about a Housing Foundation development of 15 four-bedroom homes in West Auckland which were expected to sell for $425,000 each. He said Labour's would be less because of the savings from buying in bulk.

He said KiwiBuild homes would be at least 20 per cent lower than market prices because of cost savings on constructing in bulk and the lack of a developers' mark-up.

The policies

National
*Hobsonville Pt development to include about 600 affordable homes for less than $485,000
*Half of those will be less than $400,000
*Range from 60sq m one bedroom units to 300sq m four-bedroom houses.

Labour

*Build 10,000 homes a year for 10 years.
*Average home for $300,000
*Four-bedroom homes for $300,000-$400,000 in West or South Auckland.