Housing New Zealand has ended tenancies for 986 state homes in the past two years, after reviews found the tenants could afford market rent.

The most frequently affected tenants were couples with children.

Photo: RNZ / Claire Eastham-Farrelly

Ministry ended life-time tenancy agreements and introduced reviewable tenancies for all social housing tenants in 2014.

A briefing to the minister responsible for Housing New Zealand said Ministry of Social Development reviews had freed up 986 homes.

It said most of the affected tenants were couples with children who no longer needed social housing because they could afford market rent.

Applicants with a greater need - mostly solo parents with children - had already gone into 654 of the homes.

More than 180 properties were retired as social houses. Housing New Zealand said 67 of those were sold - 51 of them to the existing tenants.