Prime Minister Anthony Albanese has admitted that his government’s first-home buyers deposit scheme will put upward pressure on house prices.

Housing Minister Clare O’Neil announced on Tuesday that first-home buyers will be able to access homes with just a 5 per cent deposit.

Asked about the programme putting pressure on house prices, Mr Albanese admitted that it would make things worse.

“Well, it will have a minimal impact. There will be a slight increase in prices,” Mr Albanese told reporters.

“But already 185,000 Australians have benefited from this scheme with minimal impact on prices.”

Mr Albanese said that modelling suggested only a “very small increase” while the scheme enables more young people to secure home ownership.

“We are dealing with supply. We have that incentive for

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