States loans: Minister to consult Islanders

Concerns were raised about the plans after an expert said that banks might be unwilling to lend mortgages on the back of loans from the States.

But the minister in charge says that he plans to take his proposals for low interest loans for first-time buyers struggling to put together a deposit out to consultation, and will be discussing them with lenders and property experts.

Deputy Green added that there were no plans to return to the old States loan scheme which offered generations of Islanders low-cost loans for homes, adding that it would be too expensive and that the extra demand would push up house prices even further.