The fastest way to get people out of poverty is for the Government to pay more subsidised rents, according to Prime Minister John Key.
The Government has indicated it could sell up to 20,000 of the state’s 69,000 homes and would work with community housing groups to get more needy people into them.
Key said over the past 30 years, people have gone from spending 25 to 30 per cent of their income on housing to 50 per cent and the Government is working to open up the availability of income-related rent subsidies to social housing providers.
The cost of paying more income-related rents would be a fraction of the cost to build more state houses, he said.
Labour's housing spokesperson Phil Twyford said subsidising rents would just make landlords richer, as it would drive up rents.
Labour and the Greens want a commitment from the Government that any proceeds from the sale of state homes goes into the sector.
