Home buyers could get some light relief from a new initiative from Auckland Council.

It's agreed to provide a limited guarantee for low-interest loans for community housing providers.

Community Housing Aotearoa's Scott Figenshow says it will help them meet growing demand.

"This kind of initiative will enable those organisations to deliver housing that meets those needs quite directly."

Scott Figenshow says the loans will help increase the stock of affordable homes.

They could be used to fund new low-cost housing developments.

"Housing options that are affordable to families earning on or less than the Auckland median household income."

The deal's could push the average house price down by about $8,000.