The house under construction by UCOL carpentry students in 2014.

Some charities hold raffles or sausage sizzles to raise money, but Arohanui Hospice is thinking big: It's selling a house.

The Palmerston North hospice is putting a house on the market to help fund its annual shortfall of $2.5 million.

UCOL carpentry students began construction on the 111 square metre relocatable house in 2013.

Since then, the hospice has been working to find a suitable section to put the house on.

Hospice strategy and operations director Louise Curtis said a section had been found at the Wescombe Grove development in Feilding.

The site is being cleared and prepared for the relocation.

Curtis said the aim was to have the house ready to go on the market by early May.

The house has four bedrooms, two bathrooms, a separate laundry, spacious open plan living and dining, and a standalone double garage.

"We are thrilled to have secured the site and have work commence on this project," Curtis said.

The hospice was grateful for the support of the businesses that had helped with the project, she said.

She thanked Humphries Construction, Central House Movers, Mitre 10 Mega and E3 Architects.

Humphries Construction will relocate the house.

Humphries director Paul Humphries said they were happy to help.

"Arohanui Hospice has provided care and respite for some of our team's nearest and dearest, so to have the opportunity to give back is rewarding."