Labor is poised to secure one of its biggest election promises after striking a deal with the Greens over housing investment.

The $10 billion Housing Australia Future Fund was put on ice when the Greens teamed up with the Liberals to block debate on it in the Senate until October.

The opposition remains staunchly against the policy, saying it will add to inflation and drive up interest rates when the government enters the market to finance the fund.

But the minor party is expected to back a motion that would restart debate and have the fund voted on in the upper house as early as Wednesday.

Independent senator David Pocock and Jacqui Lambie Network senator Tammy Tyrrell support the bill, giving the government the numbers to have it passed this week.

The fund is expected to deliver 30,000 new social and affordable rental homes over the next five years.

The Greens signed up to the laws on Monday after wringing an extra $1 billion for the National Housing Infrastructure Facility.

That comes on top of $2 billion previously promised by the government to pass the bill.

Though they were unable to include rental protections in the legislation, Greens housing spokesman Max Chandler-Mather said the party would continue to advocate for renters.

“This fight has just started,” he told ABC’s Radio National on Tuesday.

“Renters have finally got a voice. We’ve forced the country to talk about it, we’ve provided the platform, built the support for a freeze and cap on rent increases, and now our plan is to go and win it.”

The housing fund will help Labor hit the National Housing Accord target of 1.2 million new homes in five years.

While Master Builders noted the federal government’s efforts to address the housing crisis by increasing supply, CEO Denita Wawn warned Labor’s proposed industrial relations reforms could slow the pace of construction.

“We acknowledge the efforts … to tackle the housing crisis, but there is a real risk the radical industrial relations agenda being pursued by Minister Burke will negatively impact these efforts,” she said.

Liberal frontbencher Simon Birmingham said the fund would not do enough to address the housing crisis.

“This is not going to do what is necessary to address the real challenges around home ownership in Australia,” he told Sky News.

“It’s not going to generate the type of numbers of homes that will shift the dial in a market that is pressured (by) population and migration.”

Housing Minister Julie Collins believes the target is within reach.

“We’ve always been told that it was achievable but ambitious and we’re absolutely determined to be ambitious for the Australian people,” she told Nine’s Today show.

“What we’re doing is incentivising states and territories to change and do some planning and zoning reforms to make sure that we can build additional homes over that million.”

Dominic Giannini and Kat Wong
(Australian Associated Press)