Housing Minister Phil Heatley and Finance Minister Bill English have today announced the line-up of the government's seven-member Housing Shareholders' Advisory Group.

Company director and global business consultancy senior partner Alan Jackson will chair the group.

Other members include investment banker Andrew Body, property developer Martin Udale, Salvation Army director Major Campbell Roberts, Auckland City Mission head Diane Robertson, New Zealand Housing Foundation executive director Brian Donnelly and Maori development consultant Paul White.

"A review of this nature is long overdue," Mr English said.

"The government has more than $14 billion invested in social housing; much of it is in a poor state of repair and in the wrong places to meet demand.

"The group will look at how this significant asset can be better utilised."

Mr Heatley noted a huge growth in demand for one and two bedroom houses for older people, and four or more bedroom houses for large families.

"Yet we have relatively few houses to meet that demand - instead we have a surplus of three bedroom houses across the country that suit neither demographic."

Today's announcement comes less than a week after the Salvation Army's annual State of the Nation report highlighted a lack of adequate housing, particularly in Auckland.

"The advisory group will make recommendations on the best and fairest way of providing state housing services to those most in need, in the highest priority areas, for as long as they need it," Mr Heatley said.

"As the Prime Minister said in his Statement to Parliament, we have to do a better job of matching state housing support with those people in the greatest need of assistance."

The group will report on the current and likely future demand for subsidised housing, and make recommendations on the future role of Housing New Zealand Corporation in delivering assistance.

They will start work immediately and report to government by 30 April 2010. For the group's terms of reference visit: www.dbh.govt.nz/news-terms-of-reference-hsag