Investors can breathe a sigh of relief, with the Prime Minister shutting down discussions over changes to negative gearing.

He says the government’s position on housing tax concessions has not changed from before the election, and that means that negative gearing will not be changed.

The comments come after rumours emerged that some Labor party members were looking for a change to cap negative gearing to one property, to prevent distortion of the property market.

Negative gearing rules allow people who make a loss on an unlimited number of investment properties to claim that as a tax deduction.

But Prime Minister Anthony Albanese says he will be honouring the pre-election commitment to leave negative gearing alone.

He says they are working on other measures to increase housing affordability and supply, including the $10bn Housing Australia Future Fund, although legislation to create the fund has been held up in the Senate following calls to include better protection for renters.