Judith Collins has been accused by Phil Twyford of cyber-bullying and trolling new KiwiBuild buyers - but she's hit back by calling him a liar.
Fletcher Ross and Derryn Jayne were two of the buyers of the first completed homes, although they are a newly graduating doctor and marketing manager.
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Their eligibility angered those who believe the scheme should be targeted towards low-income and homeless families. They came under further fire on social media for images appearing to show they could afford international travel.
Ms Collins commented on a screenshot of an Instagram post of the pair, posted to Twitter, captioned "204 countries + 7 seas and I had the privilege of meeting you", saying: "204 countries - maybe doesn't need taxpayer support".
The reference to 204 countries is a popular meme about the chances of meeting your partner.
Housing Minister Phil Twyford has accused Ms Collins of "essentially inciting victimisation of a young couple who have just bought their first home".
"They didn't sign up for that," he said.
"They feel bullied because of Judith Collins' actions. And I think her actions show the toxic culture in the National Party that Simon Bridges has failed to do anything about."
He said Ms Collins had trolled their personal pages, and Mr Ross and Ms Jayne had felt so bullied that they had removed their social media profiles.
But Ms Collins hit back on Twitter, accusing Mr Twyford of making a "false and defamatory statement" and even applauding the young couple for buying a new home.
"Just the sort of lie I'd expect from Phil Twyford," she tweeted.
"At no stage have I 'gone on Facebook and trolled the personal pages' of anyone. Good on the young couple for taking an opportunity afforded by an enthusiastic but incompetent minister who never worries about detail."
And National leader Simon Bridges denied Ms Collins had trolled or cyber-bullied the couple.
"She's pointing out really poor eligibility criteria," he said.
"We've got a situation where this was meant to be for lower income New Zealanders who are struggling. It's just not."