Labour says Prime Minister John Key won't intervene to address the Auckland housing crisis because he doesn't want to upset the National party's wealthy voter base.
It comes after the Prime Minister said this morning he wouldn't rule out introducing a land tax on residential properties for non-residents, but he didn't think a tax was necessary at the moment.
Housing spokesperson for Labour, Phil Twyford, says Mr Key is out of touch -- all talk and no action.
"There's no doubt from the Prime Minister's own statements he's taken the view that the National Party can harvest more votes from speculators and the wealthy, who are making a killing from the hyperinflation in the Auckland housing market.
"It's a very cynical brand of politics that says it's okay to let the housing crisis spiral out of control, and it's okay to allow foreign speculators to bid up the price of housing, because some cashed up home owners are going to benefit from it."
Mr Twyford says Labour would ban all foreign buyers from purchasing existing property.
"If people living in other countries want to invest in real estate then they could build a new house and add to the supply of housing that we so desperately need."
Mr Twyford says polls show 60 to 70 percent of New Zealand voters favour a ban on foreign buyers.
The Australian government has recently brought in legislation similar to that proposed by Labour in an effort to cool the rampant housing markets in cities like Sydney and Melbourne.