Peter Dutton’s plan to let first home buyers pull up to $50,000 out of their superannuation savings to access the property market would only push up house prices and erode retirement balances, experts said.

The Opposition Leader reaffirmed the Coalition’s policy on super for housing in his budget-in-reply speech this week, but stopped short of increasing the limit, as recommended by a Senate committee headed by Liberal Andrew Bragg. Its report said borrowers should be able to drain their entire super balance to buy property.