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Jersey's Planning Minister says a scheme to help people buy their first home does not help bring down prices.

The States agreed to spend £3m to offer loans for deposits as part of a trial scheme.

Housing Minister, Deputy Andrew Green, said about 100 people could benefit and would borrow 15% of their deposit on an interest free basis from the States.

Deputy Rob Duhamel said it would do nothing to help bring down the cost of an average home in Jersey.

He said: "The more difficult challenge is to bring forward a mechanism that delivers truly affordable homes, particularly when the development industry and private housing market faces serious challenges.

"I will shortly bring forward an island plan amendment to set aside a policy that seeks to secure affordable homes as a proportion of private housing developments."

The average price of a first time buyer house in Jersey is £429,000.

Deputy Green said the loan scheme would would help people get a deposit together.

The loans will be available to people who have saved 5% of the deposit and are first time buyers.

People using the scheme will need to purchase a house that is suitable for their needs, so a couple could only use it towards a two bedroom property.

The maximum loan is £61,500 towards a three bedroom house.

Politicians voted 38 votes in favour to 9 against.