HIGH property prices are inevitable in a buoyant economy and it would be dangerous for the States to start interfering, says Housing minister Dave Jones. The average cost of a local market home has reached a record £331,075.

The figure for the last quarter of 2007 was a large increase on the previous high of £310,650.

‘In a buoyant economy where there is virtually no unemployment, you are going to have high house prices,’ said Deputy Jones.

‘I’m not surprised property is expensive in Guernsey.’

But he insisted the States must not get too involved.

‘It’s very dangerous for any government to start interfering with individual home-ownership prices simply because you could create huge negative equity for people struggling on tight mortgages.

‘If there is too much interference, you could end up bankrupting young couples in their own home,’ he said.

‘It would kill mortgage lenders’ confidence because they expect to see a certain amount of equity generated through the property to help protect their investment.’

Housing has had some success in recent years. Deputy Jones sees its job as trying to give opportunities to people of all incomes and access to accommodation through the likes of social housing, shared equity and partnership schemes.

‘It’s our job to make sure we provide access to housing at all levels and we have got other initiatives the board is discussing through the Corporate Housing Programme for first-time buyers, which includes overhauling the States home loans fund,’ he said.

‘We are not sitting on our hands at Housing and are exploring methods by which we can help first-time buyers,’ he said.