Labor reckless on negative gearing: PM

Labor plans to make changes to negative gearing at a time when the economy is in transition - and that's reckless, Prime Minister Malcolm Turnbull says.

John Howard has warned the government to tread carefully before making changes to negative gearing. (AAP)

Labor wants to administer tax changes for property investors that will inflict a huge shock at a time when "confidence is everything", Prime Minister Malcolm Turnbull says.

He says Labor's plans to limit negative gearing to new properties will hurt house values - and Australian families' single biggest asset - at a time when the global economy is turbulent and Australia is going through a transition.

"To administer such a big shock ... is very reckless," Mr Turnbull told reporters in Canberra on Sunday.