UPDATED 6.49PM: Two iwi have confirmed they're taking court action over Crown land in Auckland.

Ngati Whatua and Waikato-Tainui are concerned plans to sell Crown property for residential development in Auckland could breach their right of first refusal to buy surplus Crown land.

Ngati Whatua's Ngarimu Blair said time is of the essence when it comes to getting more housing in Auckland. For that reason lawyers have been instructed to file a statement of claim in the High Court in Auckland this week.

Ngarimu Blair is hopeful the courts will recognise the urgency of the matter and give it priority.

The iwi are behind the government's affordable housing goals. However they want to seek clarification from the High Court, and have invited the Crown to join them in making a joint application.

Housing Minister Nick Smith claims that if government agency land isn't needed, it is offered to other agencies. The right of refusal is only triggered if land goes to the open market for sale.

Smith sat down with iwi yesterday and says the discussions were constructive, with a lot of good will. However Smith said there was no mention of legal action. 

"It certainly wasn't raised when I met with the thirteen iwi. I think there are some different views among different iwi about it, but we'll work through this in a considered way," he said. 

Prime Minister John Key is confident in the government's position.

"Our issue isn't working with iwi if they're interested in working in developing social housing but this since couldn't be used for social housing and the government would have no interest in disposing of it," Key said. 

But the government is facing accusations it's making up its Auckland housing policy on the fly.

Labour Leader Andrew little believes cabinet ministers don't hold meetings on a Sunday without there being a serious issue at stake.

"This Minister has overextended himself in his desperation to announce there is land available," Little claims. "That's why they're meeting. He's overstepped the mark, put the Crown in an impossible situation, and now they have to resolve it."

Little said the meeting only came about "after the iwi threatened legal action."

Smith rejected Little's assessment, saying he wouldn't have done anything differently. He also rejected suggestions iwi were left out of the loop saying his officials went to the Tamaki collective a month before the policy was announced.

Meanwhile, residents on one of New Zealand's most expensive street are concerned their renovation plans could be road-blocked by iwi consultation.

Auckland Council wants to require property owners to consult with iwi about sites deemed culturally significant, but the move is being opposed by some Paritai Drive residents, who have been told their properties are part of one such site.

Democracy Action's Lee Short says the residents have received no evidence to back up the claim, and "there is no substantive back-up and tangible evidence it's a site of significance."