Panel member Deputy Judy Martin said that she knew many tenants who were stuck in the States housing system because they were not given the incentive to leave.
She told Chief Minister Frank Walker, representing Housing Minister Terry Le Main, that instead of the States paying tens of millions of pounds in rent rebate every year, tenants should be offered one-off payments to leave and buy their own homes.
If the incentive was there, she added, people would strive to earn more money so that they could earn their one-off payment and get out of the system.