State house tenants who are on on high enough incomes will be able to buy their homes as part of a Housing New Zealand shake-up.
Minister of Housing Phil Heatley confirmed the Government was working on a policy to sell state houses to "those tenants who are able to move into home ownership".
Proceeds from the sale of state houses would free up finance for replacement state houses "for those most in need", he said.
The Government had no "set targets", and some properties would not be sold as they were strategic assets for Housing New Zealand, Mr Heatley said.
In the next few months the Government would offer a range of home ownership products, and is likely to include assistance for tenants to find private market housing.
While 92% of tenants were paying income-related rent the number of sales was likely to be small, he said.
"It is difficult to estimate the number of sales."
No tenants would be forced out of their homes, he said.
Opposition Housing spokeswoman Moana Mackey said she did not support the sale of state houses and the construction of new homes would result in "state housing ghettos on the outskirts of town".
"We don't see Housing New Zealand as a property developer; we see them as providing for people in need," Ms Mackey said.
Figures released to the Otago Daily Times under the Official Information Act reveal almost 600 state houses were rented to households earning between $901 to $2000, including seven Otago households.
One household, which may include incomes of more than one person, earned more than $2001 a week.
The released figures reveal only tenants' current income-related rent applications held by Housing New Zealand. Tenants were not required to submit income-related rent applications, Housing New Zealand advisory and assurance spokeswoman Lisa Tipping said.
"Some tenants entered state housing when they were on low incomes and have since improved their circumstances or were tenants prior to the introduction of income-related rent," she said.
The corporation encouraged tenants on market rates to rent in the private sector or buy their own home, she said.
State housing facts
• Housing New Zealand has 68,000 properties nationally, housing 200,000 people.
• It has 620 homes in Otago and Southland.
• More than 30,000 state housing households were on an income of between $210 and $300 per week.
• One household was earning more than $2001 per week.
• More than 38,000 tenants were paying between $51 to $100 per week.
• Four tenants were paying more than $501 per week.
Source: Housing New Zealand
