Backlash to Labour's housing policy has exposed signs of internal party disarray | Claire Robinson

The government has broken its promises and handed them to the opposition on a golden platter

As the first majority government in New Zealand's MMP history, with an extraordinarily popular prime minister, many have urged Labour to spend its political capital." This is the buffer that enables popular governments to take bold actions that might lose them some voters, while retaining most of their solid support in a metaphorical bank.

Last week Labour spent some of its political capital. In a surprise announcement it said it would extend the brightline test (taxing any financial gain made on the sale of an investment property) from five to ten years and remove mortgage interest as a rental property tax deduction, as part of a suite of housing policy and funding changes.