Banks agrees prices are too high

English's statements were reported on Friday.

Banks said that unless action was taken to resolve the affordability problems, a generation of New Zealanders would grow up "tenants in their own cities".

"We would like to see National heed the advice of the Productivity Commission by removing restrictions on land supply for residential housing.”

In March, the Commission flagged tight land supply, a slow consenting process, and poor productivity in the construction sector as contributing to unaffordable housing much more than New Zealand's tax structure.