Allowing first home buyers to access their superannuation to get on the property ladder will drive up house prices if the move is not coupled with significant efforts to boost supply, experts have warned.

But Grattan Institute economic policy director Brendan Coates said some of the price blowouts predicted by superannuation groups were “sensationalist” given funds’ focus on preserving savings for retirement, as debate over controversial “super for housing” policies heats up.