House prices to grow, just more slowly

An ALP-aligned think tank predicts house prices will grow under Labor's changes to negative gearing and capital gains tax, but just more slowly.

House prices will grow more slowly under Labor's changes to negative gearing and capital gains tax, an ALP-aligned think tank predicts.

The McKell Institute report, due to be released ahead of a debate between Scott Morrison and Chris Bowen in Canberra on Friday, finds the value of homes will still grow each year, albeit at a "more modest" rate.

But the report claims the policy will not cause the housing market to crash, according to Fairfax Media.