Negotiations with banks to lend leaky home owners money for repairs are going well, Finance Minister Bill English says.

The government has presented a leaky home rescue package scheme to help fund repairs on affected properties but it does not resolve the issue of who is liable for the crisis in the first place.

The proposed scheme would see homeowners left covering half the cost of leaky building repairs themselves, with 25% covered by government and 25% covered by the local authority.

The Building Industry Federation said the financial package represented a good way forward but left issues of liability unresolved.

The leaky homes rescue package announced by Building and Construction Minister Maurice Williamson today is expected to cost the government $1 billion over the next five years but will fix only some of the damaged homes.

The package will see local authorities and government each contribute 25% of the repair cost and a government guarantee will back loans from major banks for half the remaining cost of repairs.