House prices could dip up to 8pc: report

House prices could dip 3-8 per cent over three years if Labor legislates its plan to limit tax breaks for property investors.

That's the view of prominent property investment research institution SQM Research in a report released on Wednesday.

Rents would remain stable initially, with growth to continue at current levels of one to two per cent nationally.

However, there may be an acceleration from 2020 because of the possible cancellations of dwelling projects.

It would take the housing market between two and four years to adjust to the policy.

SQM believes property sales turnover will fall 17-20 per cent in 2018.

This would result in a loss of state stamp duty of between $3.1 billion and $3.8 billion.

Treasurer Scott Morrison seized on the report and said he was surprised state governments had not been more vocal about the potential loss of revenue.

"Labor's policy puts upward pressure on rents," he told ABC radio.

Opposition Leader Bill Shorten dismissed the report saying voters were concerned about the death of the Australian dream to own their own home.

"As soon as Labor came up with sensible reforms ... this government has ran a million miles because they would rather play politics than re-create the Australian dream of housing affordability," he told reporters in Sydney.