Homeowners grant push up prices: survey

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Two-thirds of Australians believe the federal government's more generous first homeowners grant is pushing up house prices, a new survey shows.

An online poll conducted by mortgage broker Loan Market Group found 35 per cent of those who said the grant had inflated prices believed it had only impacted on the lower end of the property market, while 31 per cent said it had not stopped them from buying real estate.

One in five of the 633 respondents in the poll, released on Monday, said the boosted grant had no effect on prices and 13 per cent thought property values had actually fallen.

First home buyers: what you need to know

The government doubled the first homeowners grant to $14,000 for established homes and trebled it to $21,000 for new properties last October as part of its first stimulus package.

In the May budget the grant was extended until the end of the year from an original June 30 deadline, but it will be pared back to $10,500 and $14,000 respectively from October 1 before returning to $7,000 for both categories on January 1 next year.

Loan Market executive director John Kolenda said the grant has underpinned the market and even given it some buoyancy, especially at the lower level, during the global financial crisis.

"The residential real estate sector in Australia has so far weathered the worst of the downturn and the grant has played a major part in shoring up the market," he said.

The combined effects of softer property prices, low interest rates and the boosted grant had created an environment in which many more Australians had been able to afford a home.

The government has said more than 97,000 people have taken up the boosted grant so far.

Official housing finance data for May are released on Wednesday.

In April, the data showed a record 28 per cent of home loans granted in the month were taken out by first-time buyers.

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