Prime Minister Jacinda Ardern sticking by KiwiBuild programme despite Salvation Army criticism

Prime Minister Jacinda Ardern is denying accusations her Government's KiwiBuild policy is doomed to fail. Photo / File

Prime Minister Jacinda Ardern is sticking by her Government's KiwiBuild programme, despite the Salvation Army today saying reports showing it may not deliver is creating uncertainty for families.

"Recent reports from Treasury and the chief executive of New Zealand Certified Builders indicating the programme may not be able to deliver the housing required creates uncertainty for families who see KiwiBuild as their path to homeownership," the Salvation Army said.

"In the middle of the worst housing crisis New Zealand has faced in at least two generations, such uncertainty has an adverse impact on affected households. Kiwi families need to have certainty about Government plans to provide the level of housing required in the next five to 10 years."

The Salvation Army called for the Government to set up an expert group to deliver the required number of KiwiBuild houses quickly at an affordable cost for families who need them.

"Government departments are not presently well equipped to direct the KiwiBuild programme," the organisation said in a statement.

Ardern denied the policy was doomed to fail.

"The alternative is do nothing and continue to having a declining home ownership rate and I don't accept that."

She said KiwiBuild was ambitious and no government had tried to bridge the gap in the affordable housing market as hers was doing.

National's housing spokeswoman Judith Collins said it was time for Housing Minister Phil Twyford to face the facts.

"You've had builders, academics, the Treasury, Reserve Bank, MBIE, economists and media commentators all pointing out the serious flaws in his policy, and saying the Government won't deliver on its promises, in spite of Phil's 'Hear No Evil' approach to his responsibilities.

"And today it's the Salvation Army urging Phil to accept he's not up to it and calling on the Government to bring in the experts to deliver more houses," she said in a statement.