Analysts at Barrenjoey have backed a Coalition push for the prudential regulator to more explicitly consider first-time home buyers when it sets lending policies, declaring debate about the Australian Prudential Regulation Authority’s mandate as “good for Australia and good for the banks”.

With access to the housing market for younger Australians set to become a major federal election issue in the new year, Barrenjoey banking analysts Jon Mott and Annabel Ross said in a report sent to clients on Monday it “appears logical” for APRA to consider first home buyers when it sets so-called “macroprudential” policies.