'States wrong with first-time buyer plan'
REJECTING financial help schemes for first-time house buyers in Guernsey is the wrong decision, a lender has warned, as he suggested such a scheme combined with developing affordable housing would be a better option.
In a joint report, to be debated next month, Treasury and Housing concluded first-time buyers' schemes were 'fundamentally inflationary'.
The departments felt first-time buyers were best served if house prices stabilised until they became more affordable and then increased only in line with wages.
However, Pierre Blampied, managing director of mortgage broker SPF Private Clients, said while textbook economics would support the decision, it was not that simple and he did not believe it was the best move.
'I would have proceeded with the strategy they have agreed to take, which will take time to implement and to build the respective properties.
'In addition to this, a first-time buyers' deposit scheme should have been undertaken this year, which would have assisted purchasers by way of the States funding a 10% or 15% deposit, interest-free, repayable over say 15 years.
'My thoughts would enable action to be taken quickly as the current strategy cannot be actioned that quickly.'
