Most Australians believe the boosted First Home Owners Grant contributed to inflated property prices, a national survey has found.

An online poll conducted by leading mortgage broker Loan Market Group found 66 per cent of respondents thought the expanded grant scheme had pushed prices up in some markets.

But 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 and 31 per cent said it had not stopped them from buying real estate.

Twenty one per cent of the 633 respondents said the boosted grant had no affect on prices and 13 per cent thought property values had actually fallen.

Loan Market Executive Director John Kolenda said there were a range of views about the pros and cons of the expanded grant scheme, which will continue in its present form until September 30 and phase out at the end of the year.

But he said most economists believed it had provided a solid foundation for the property market during the economic downturn.

“The decision last October to double the grant to $14,000 for established dwellings and $21,000 for new homes has underpinned the market and even given it some buoyancy, particularly at the lower level, during the global financial crisis,” he said.

From October 1 until December 31, first time buyers will receive a total of $10,500 and those buying new home homes $14,000.

Mr Kolenda said around 70,000 people had taken advantage of the boosted grant and it had been one of the most successful of the Federal Government economic stimulus packages.

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 have been able to afford a home.

“Despite the global economic uncertainty, the conditions for those seeking to enter the property market have been ideal and it has given many long term renters the opportunity to achieve the great Australian dream of home ownership,” Mr Kolenda said.

He said the decision in the May Budget to extend the expanded scheme another six months had helped maintain stability in the property market.

“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,” Mr Kolenda said.

The current online survey looks at whether people will invest in property over the next 12 months.

People can participate in the latest survey by visiting www.loanmarket.com.au or www.xinc.net.au or www.home-loans.com.au

Loan Market Group survey results:

Q: Do you think the boosted First Home Owners Grant has inflated property prices?

No, prices have been falling: 13 per cent
No, prices are about the same: 21 per cent
Yes, but only at the bottom end of the market: 35 per cent
Yes, but I intend to buy anyway: 31 per cent