Labour's plans 400 state rentals or affordable houses for Hutt Valley by 2020

Labour leader Andrew Little says he knows of a fmaily that has been living in a garage for six months. Photo/Nick Reed

The Labour Party is promising to build more state houses in the Hutt Valley and affordable homes including three-bedroom terraced homes that would cost as little as $350,000.

It would also build one-bedroom units for the elderly and disabled to be sold for $200,000.

All up it is promising to build 100 more state rentals and 300 affordable houses before the end of 2020.

Leader Andrew Little announced the policy in Naenae today and declared that the Hutt Valley was in the midst of a housing crisis.

He said 266 families were on the waiting list for a state house in the Hutt Valley, house prices had risen by 25 per cent and rental by 9 per cent.

"I know of one family that has been living in a garage for six months."

Housing New Zealand had demolished hundreds of state houses in the Hutt Valley and left the land empty for years.

The new homes would be built in Epuni, Naenae, Waiwhetu, and Petone.

Under Labour's Kiwibuild policy, it plans to build 100,000 homes over 10 years for first home buyers.

Little said Prime Minister Bill English, who was minister responsible for Housing New Zealand, had bled Housing New Zealand dry and failed to show leadership.

"Labour's plan is what Hutt families have been crying out for."