The state house lottery: You have to be in it to win it

State housing is pictured in Panmure. Photo / Phil Walter

Getting a state house is currently just a "lottery" for tenants, Social Housing Minister Paula Bennett says.

The minister told TVNZ's Q+A today selling state houses to community housing providers was not an "experiment" and would work in tenants' best interests.

The Government announced this month Tauranga and Invercargill would see the first 1000 to 2000 sales of state houses.

All 1250 existing state houses in Tauranga and all 370 in Invercargill could be up for grabs this year if willing buyers can be found.

Ms Bennett said the transfer would mean more housing availability and more choice for tenants.

"At the moment they almost have to win a lottery to get to the top of the list and a vacant house come available.

"What the past has been for decades is putting [tenants] into a state house and leaving them there for generations."

Tauranga and Invercargill had been chosen because the Government "had to start somewhere", she said.

The areas had a stable demand for housing and a number of community housing providers who indicated they wanted to get into the market, she said.

The houses will be sold at a discount to community housing providers who might then partner with private developers to make the most of the opportunity, Ms Bennett said.

Another 3000 social houses would be built in the process, she said.

There are currently 4,808 people on the social housing waitlist.

"We have people that need social housing. The argument becomes should the Government provide all of that," Ms Bennett said.

"We could, if that's what we choose to do, but it becomes all about the housing and not about the people."