The Budget includes funding for 8,000 new state-owned houses, more than doubling the current programme to build 6,400 homes for both residential and transitional housing for homeless people.

The house-building programme will be delivered buy state housing agency Kainga Ora, and community and transitional housing providers.

Kainga Ora will use increased borrowing limits to fund the new burst of activity, which is expected to take four or five years to complete and takes to approximately 17,000 the number of state houses on the government’s construction schedule.

Also announced is a $56 million boost to funding for insulation and heating to be fitted into around 9,000 homes.