Andium Homes, the organisation that administers the States housing stock, was given permission to demolish and rebuild a series of units at Le Squez last year as part of a large-scale refurbishment of government-owned property.
However, a group of neighbours who live on Sarina Road said that while they understood there was a need to replace the homes, the plans would cause unreasonable harm by blocking light and would also lead to their properties being overlooked.
Following an appeal earlier this year, independent planning inspector Philip Staddon recommended that either the scheme be revised, with the height of part of one of the blocks being reduced by one storey, or that the appeal be allowed in full and planning permission cancelled.