Parliament on Thursday approved a measure that paves the way for the housing department to set up an agency responsible for acquiring land on behalf of the state.

The Housing Development Agency Bill, that would make it possible for the department to establish the Housing Development Agency, was supported by all political parties.

Speaking during a Parliamentary debate on the measure, Housing Minister Lindiwe Sisulu said the agency would ensure that the department acquired housing land within reasonable time.

"The rational behind the agency is that it would assist in cutting red tape that prohibits the acquisition of suitable land, something that would be very difficult for municipalities or provincial departments to do on their own," she said.

It would also ensure housing projects were approved promptly.

"This in turn should make the housing segment attractive for increased private sector investment," Sisulu said.

The measure will now be forwarded to the National Council of Provinces for consideration.

Sapa