Labour and the Green Party support the Reserve Bank's decision to further restrict loans to housing speculators and investors, claiming the National-led Government has failed to crack down sufficiently on speculators.
The Reserve Bank has previously said property speculation accounted for more than 40% of Auckland sales, 38% in some other regions, Green Party finance spokeswoman Julie Anne Genter said.
"The Green Party supports Reserve Bank actions to take some of the heat out of the property market driven by speculation,'' she said.
"The National Government is still the property speculator's best friend.
"This Government has made it easier to buy a third, fourth or fifth house, rather than your first,'' she said.
The LVR changes were "way overdue''and she called on the Government to next remove the tax advantages of property speculation.
The Greens would push for a capital gains tax on all properties, except the family home, Ms Genter said.
Labour's finance spokesman Grant Robertson said the Reserve Bank's LVR proposals showed it was prepared to "crack down on speculators'', while National was "stuck in denial mode''.
"The proposed extension of LVRs for owner-occupiers outside Auckland shows the Reserve Bank's concern that the housing crisis is spreading.
"This will be a disaster for some first-home buyers in our regions,'' he said.
Labour's plan to fix the housing crisis included banning offshore speculators from buying residential properties, an extension of the bright line test to five years before being able to sell, or face capital gains tax, and to consulting on ending the practice of negative gearing.
Property Institute of New Zealand chief executive Ashley Church was scathing of the Reserve Bank announcement, describing it as "a politically motivated response to house price inflation''.
He said the LVR changes would make little difference to house price inflation.
"If the Reserve Bank can now be politically influenced, it calls into question the entire basis of its existence and the terms of the Reserve Bank Act,'' he said in a statement yesterday.
Mr Church said the announcement was "essentially a U-turn''.
"Two weeks ago we were told that these measures would be introduced 'at the end of the year'. Now they're suddenly sufficiently serious that they need to be introduced in six weeks' time? What's changed?'' he said.
