The company at the centre of the prisoner violence controversy could be about to make a bid for state housing.

The Government has taken over control of Serco's Mt Eden Prison, after reports of fight clubs, inmate violence and the death of a prisoner.

Labour housing spokesman Phil Twyford said it now appears the company is putting its hand up to buy social housing.

"That's going to put yet another question mark over the future of this state house sell off policy."

Phil Twyford said the Government needs to rule out selling any state houses to Serco.