The Greens are prepared to negotiate with Labor over its shared equity housing scheme, signalling a softening of demands to tear up tax concessions for property investors in exchange for support in parliament.

After holding Labor to ransom for much of last year over the $10 billion Housing Australia Future Fund, the Greens this month demanded negative gearing and capital gains tax changes in return for their support for the new scheme. Under the scheme, the government would take equity of up to 40 per cent in a home to lower deposit and loan servicing costs.