The Government's moving to curb speculation and close tax loopholes in the housing market

It's announced a suite of measures - including a 3.8 billion dollar housing acceleration fund, and lifting the First Home Grant caps to tackle the red hot market.

Finance Minister Grant Robertson says they're also doubling the bright-line test from five years to ten years to reduce the attractiveness of flipping residential homes to speculators.

He says the average house in New Zealand is owned for seven to eight years - so extending the brightline test to just beyond this mark, will capture more speculative investment.

The Government will also remove the ability for property investors to offset their interest expenses against their rental income when they're calculating their tax.