A warning is being issued that time is running out to act on the housing crisis.

Residential property values for August have risen at their fastest annual pace in eight years.

Most of the growth in mortgage lending is going to investors.

QV experts are taking that as a sign the Auckland property market is about to reach its peak.

Labour's housing spokesperson Phil Twyford said the Government's playing a high stakes game by doing nothing about it.

"I think John Key has made this political calculation that some homeowners in Auckland are happy to see prices going up, because they think they're getting wealthier."

"But they won't thank him if the housing bubble bursts."

Twyford said the Government's policies are to blame.

"You can't blame the market or speculators for what's going on."

"The very clear message from the National government's housing policy is that if you want to get rich in New Zealand, become a property speculator."