An economist says Labour's proposed capital gains tax won't stop house prices rising.

The party wants gains on commercial and residential property to be taxed 28 percent, with revenue going into the health sector including free doctor visits.

It excludes the family home and inheritances. 

Opes Partners Resident Economist Ed McKnight told Mike Hosking that the tax is often thought as a house price killer, but that's not the case.

He says in Australia since they introduced the tax, house prices went up 6.5 percent on average and in the UK they went up by 8 percent a year.

LISTEN ABOVE