The Labour Party though is predicting a mass sell off of state houses as the Government's social housing legislation is passed into law.

The Government's had the numbers to pass a Bill that enables it to transfer and sell state houses to registered community providers of social housing

MP's have voted 63 to 56 in support of enabling legislation at its third reading in Parliament.

Social Housing Minister Paula Bennett is countering opposition accusations that the new law gives ministers too much power to sell state houses, saying there are safeguards in the process.

She said ministers will be required to publicly notify plans to transfer state houses to community providers.

"This provides transparency and and allows parliament and citizens to assess whether the exercise is consistent with the purpose outlined in the legislation."

Labour MP Phil Twyford said the law will give Housing New Zealand Minister Bill English and Social Housing Minister Paula Bennett carte blanche to do any deal they like, with whomsoever they like, on any terms and conditions.

"It gives that minister the power to sell billions of dollars of land and public housing in this country to their mates, to overseas corporations, to merchant bankers and property speculators."