State house tenants wanting to buy their house can do so from today.
Housing Minister Phil Heatley announced in June that tenants would have the option of buying their state houses at market rates.
Money from sales would be used to build new state houses and the building industry would get a big boost.
Not all state houses will be available for sale.
About 40,000, of the 69,000 stock, will be available.
Housing New Zealand will approach 3800 state housing tenants who pay market rent and live in a house that is available for purchase over the next week, Mr Heatley said.
"This is a great opportunity for state house tenants who are in a position to consider home ownership."
The Government did not expect "rapid take-up" and tenants were not obligated to buy their home.
Tenants would have to organise their own finance.
To help them buy their houses the Government also extended the maximum amount able to borrowed under the Welcome Home Loan scheme to $350,000.
The scheme sees the Government underwrite mortgages for low-income borrowers.
At the time the scheme was announced other political parties were critical.
The Green's housing spokeswoman, Sue Bradford, said houses which were sold could quickly end up back on the market, with investors and developers reaping profits.
Today, Labour MP Moana Mackey said Mr Heatley needed to provide more information and assurance about replacement houses.
"On the face of it, this creates the impression National has no intention of maintaining the size of the current housing stock at a time when it is under extra pressure because of the recession.
"Mr Heatley must give an immediate guarantee that all houses sold will be replaced promptly."
