Housing Minister Phil Twyford has announced construction is underway on the first KiwiBuild houses. The Government plans to build 100,000 over 10 years (file photo).

The frames have gone up on the first 18 KiwiBuild houses, which are under construction in south Auckland.

The three- and four-bedroom homes are the first to be built under the Government's KiwiBuild programme.

They are part of the McLennan development and sit on land formerly owned by the Defence Force between Takanini and Papakura.

HANNAH ROSS/STUFF A total of 30 new homes on the site will be finished by the end of 2018.

Housing and Urban Development Minister Phil Twyford said he was "incredibly proud" that the building was underway.

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Twyford said on Saturday morning it was fitting the homes were being built in Liberation Rd, as they would be giving freedom to families who are currently locked out of the housing market.

SUPPLIED An artist's impression of Takanin's McLennan development, a 600-house subdivision being led by Housing New Zealand and the private sector.

"This is a significant moment, for the first time we have the Government rolling up their sleeves and building high quality, modest, affordable starter homes for families, which is something that has not happened in this country for decades," he said.

"These first 18 homes will be ready for their families in August. A ballot, open to first homebuyers, to purchase these homes will be launched closer to that time.

"A total of 30 KiwiBuild houses are projected to be built on the site by the end of 2018, with the possibility of more in the following stages of the development."

The McLennan development is a partnership between Housing New Zealand and private developers.

The site for the 18 homes became available for KiwiBuild after private developers were unable to finance purchasing the land, Twyford said.

"We seized the opportunity to build KiwiBuild homes, rather than just watch the grass grow."

The houses had an expected price of $579,000 for a three-bedroom home and $649,000 for a four-bedroom home.

Twyford said for many people, even a starter home at those prices would be too much.

The Government was working on shared equity programmes that would give people a smaller mortgage at first and a decent opportunity at home ownership.

He said a planned upgrade of Mill Rd and a third rail line would help to connect the area to the rest of Auckland.

The KiwiBuild programme is planned to construct 100,000 affordable homes for first homebuyers over 10 years, with half of those in Auckland.

In March, the Government announced 4000 homes would be built in Auckland's Mount Albert – a mixture of KiwiBuild homes, public housing and open market houses.