Earth has been moved and seven new two-bedroom state houses will soon be built on a large section in Whanganui's Poynter Pl.

One of the buildings has been staked out. Contractors said construction can start when council consent is received.

Resource consent was granted on March 7 but the consent conditions require stormwater management information and the council is working with the applicant on it.

Before the work can begin an approved building consent will be required. The building consent should be issued when the construction company has addressed the stormwater issues, Whanganui District Council principal planner Hamish Lampp said.

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The houses are the first additions to Housing New Zealand stock in the Whanganui District in some time. They are two-bedroom because that is the size most often needed.

They will be low maintenance, fully insulated, double glazed and have carpets and curtains.

Housing New Zealand (HNZ) had hoped construction could begin by the middle of March, and the houses would be ready to occupy in June this year.

The building will be done by Devon Homes, and overseen by Jennian Homes.

The houses will be sought after. At last count there were 64 families or individuals wanting HNZ help in Whanganui.

At the same time some Poynter Pl residents are worried property values will drop in the street after the state houses are built.

Two other HNZ houses are to be built on back sections in Grey St, and a total of 20 added to Whanganui by 2020. There are already 260 in the district.