State houses being sold to community housing providers could end up being sold for a profit.

The government's started the process, with the first Housing New Zealand properties set to be sold in Tauranga and Invercargill.

Responding to questions in Parliament, the Minister Responsible for Housing NZ, Bill English, wouldn't rule out community housing providers selling the homes again.

He says they wouldn't want to do that.

"The population is different than it was in 1950 ,when we built thousands of three-bedroom houses.

"Now a quarter of all New Zealand children are born into a sole-parent household."