Supply key problem for housing: Morrison

Treasurer Scott Morrison insists Australia's key housing affordability problem comes down to supply.

It's the message he's receiving during a fact-finding trip to the UK, which had similar problems and challenges.

"In Australia in particular, while we've had strong growth in house prices, particularly in Sydney and Melbourne, that has been driven by classic economic fundamentals, not as a result of speculative bubbles or financing issues," Mr Morrison told Bloomberg.

To resolve the problem there needs to be an increase in land release, planning and approvals, while connecting infrastructure to new suburbs in new areas.

"It's about where the jobs are and there's no silver bullet issue on any of them," he said.