Lower rents shape as a bonus consequence of rules allowing first home buyers to get a mortgage with just a five per cent deposit, analysts say, even though the policy is likely to push up property prices.

The key election promise from Labor was aimed at making it easier for young Australians to get on the property ladder.

Allowing more people to buy their own house or unit could also reduce demand for rentals and pressure on rents, Domain chief of research and economics Nicola Powell said.

"What that will do is fast-track a lot of tenants transitioning to being home owners, which should also help ease the demand," she told AAP.

But the policy isn't all good news, with experts warning the decision to remove a barrier to getting a mortgage - saving for a deposit - could increase demand a

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