Prime Minister Christopher Luxon has denied a claim from Australian cricketer Usman Khawaja that he said Premier House is “condemned” and unfit to live in.

On Monday night, Luxon and Sport Minister Chris Bishop hosted the Australian and New Zealand cricket teams at the property in the Wellington suburb of Thorndon.

The festivities - including a Māori welcome and a backyard cricket game with a specially-mowed pitch - were held outside.

Luxon, who described himself as a test cricket tragic, conversed with players for an hour.

Australian cricketer Usman Khawaja recounted that conversation with Luxon - but the contents of what were exactly said have been disputed.

“The prime minister said he couldn’t live in his place,” Khawaja said.

“He said it was condemned, the kitchen was condemned ... I said, ‘why don’t you live here?’ He said, ‘I’m actually not allowed, it was condemned’.”

“I said ‘what?!’ You’re the prime minister, fix it!’

“He was like ‘oh, that costs money’. I’m like, ‘surely there’s some money in the New Zealand system!”

However, Luxon said he had not described Premier House as “condemned” and it was not an accurate description of its state, but he said it did have maintenance issues which needed sorting before he would move into it.

“No, it hasn’t been [condemned]. That’s not the language I have used or I was reported as using,” Luxon said.

“I was asked do I live in Premier House, and the answer is ‘no, I don’t’. As you know, Premier House has long-standing maintenance issues. A report was given to the former prime minister (Hipkins). That same report has been passed on to me and the Government will consider what options we have available to remedy all the maintenance issues that are there. Until then, I stay in my apartment.”

“It’s important because the report that Chris Hipkins got and he passed onto me, it obviously needs investment. How we can manage that in the times we’ve got and the cost of living crisis is difficult.”

Asked if he thought Premier House was liveable, he said: “at the moment there are long-standing maintenance issues with the apartment there and the house in general.”

The prime minister lives in an apartment on the top floor of Premier House, while the lower floor is used more for functions.

Prime Minister Christopher Luxon talks to, from left, Devon Conway, Daryl Mitchell and Neil Wagner. Photo / Hagen Hopkins

Premier House in Wellington, pictured in 2015. Photo / Mark Mitchell

The prime minister has been coy on his living arrangements since taking office in November last year.

Wellington newspaper The Post reported earlier this month Luxon was living at his Wellington apartment, one of seven New Zealand properties the wealthy former executive owns without a mortgage.

The National leader faced criticism for accepting a $31,000 annual allowance to live in his own house as an MP.

The ballroom/dining room at Premier House in Wellington. Photo / Mark Mitchell

As prime minister, he is now eligible for a $52,000 handout if he does not live at Premier House.

The Post’s report says Luxon has received a briefing on work needed at Premier House, and he was mulling it over.

“Premier House requires a significant amount of work so the prime minister will consider that before making any decisions around residing there,” a Premier House Board spokesperson said.

The decision to renovate Premier House would run counter to the Coalition Government’s pledges to rein in public spending.

The entrance hall at Premier House in Wellington. Photo / Mark Mitchell

Luxon’s Government is engaged in a tough round of budget cuts, aiming to shrink the public service by $1 billion annually, including spend on consultants.

However, it is a well-held view that Premier House needs something of a spruce, with former finance minister Grant Robertson saying in 2020 it “has a slight 80s motel vibe to it”.

“On the night of the Netball World Cup final, I had a sleepover at Premier House and I can tell you that it is in severe need of an upgrade upstairs there... it’s not up to scratch,” he said.

Then-prime minister Dame Jacinda Ardern opted against the renovations as she was “not someone who likes to spend money on herself”, according to Robertson.

Prime Minister Christopher Luxon is presented with a signed Black Caps shirt by Black Caps diversity and inclusion lead Andrew Tara at Premier House in Wellington. Photo / Hagen Hopkins

On Monday night, Luxon enjoyed time in conversation with test captains Pat Cummins, Tim Southee and others.

In a short speech, he told players he was “probably the biggest test cricket fan” of any New Zealand prime minister, saying he played corridor cricket in Parliament House while in opposition.

“We were sort of imagining ourselves playing with you,” he told the test squads.

Luxon’s office has been contacted for comment.