The Prime Minister has described Wellington's housing squeeze as a problem of success.

The Wellington City Council today pushed through a Draft City Housing Strategic Investment plan, which includes the move to build 750 social and affordable homes.

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Bill English said as long as the Wellington Council continues to respond quickly, they will be able to deal with the situation.

"I hope they are working hard to enable the development that's needed to respond to a problem of success," he said.

"Wellington hasn't experienced pressure in its housing market for quite a long time."