Labour is promising to help public housing tenants buy their own homes, putting $100 a week towards their deposits under a new rent-to-buy scheme.

Under the election policy, working tenants in Kāinga Ora homes and participating community housing properties would be able to build up a deposit while paying rent.

They would receive a $100 weekly credit, adding up to $5200 a year, with the money held in a trust account.

Tenants could then buy the house they were renting at a price set by an independent valuation.

Labour would also expand the existing First Home Loan scheme, raising the income limit to $300,000 and allowing more people to buy a house with a deposit of just 5%.

Tenants could use both schemes together to buy their homes with a 5% deposit.

The party says it would build three new public homes for every Kāinga Ora property sold through rent-to-buy, using the money from sales to help fund construction.

Community housing providers would be able to choose whether to participate.