Key: Greens' house price fix 'barking mad'

Prime Minister John Key (Getty)
Prime Minister John Key (Getty)

Prime Minister John Key has described a plan to lower Auckland house prices as "barking mad".

The Greens say prices need to drop to where they're three to four times the median household income, where they have historically been. Presently the average-priced home is 10 times that, ownership rates are falling and homelessness is growing.

Greens co-leader Metiria Turei says the party wants to find a way to slowly bring prices down to a point they're "reasonable".

Mr Key says that would "literally… burn the savings of every New Zealander", and Andrew Little says Labour's plan is to "stabilise" prices, not crash them.

The Greens and Labour have agreed to work together to win the next election.

"Labour and the Greens are in bed together - they're married," says Mr Key.

"As we know when they got married they can't pick and choose… if it's a policy of the Greens, it's a policy of Labour. That is a future Government policy to reduce your reduce your house by 50 percent. Personally, I think it's barking mad."

The average Auckland house price is closing in on $1 million, up 81 percent in five years.