The government wants Kiwibuild to be a profitable venture for those who do the work.

John Penny the developer of the first twelve Kiwibuild homes on the market has told media he is not sure what his bottom line will look like.

But Housing Minister Phil Twyford told Mike Hosking Penny's signed up to build another 38 houses at the south Auckland development, so suspects he is being modest.

"The government will sell the houses at cost to young families but I do not expect people to build them at cost."

LISTEN ABOVE AS PHIL TWYFORD SPEAKS TO MIKE HOSKING