SOARING property prices are leading more people to team up to buy houses.



With house prices rising ever higher, individuals are increasingly turning to the power of two, three or as many as five, of their mates to get into the property market.



A survey of 300 Australians about to purchase their first home found that one in every two were considering co-ownership as an option rather than going it alone.



"With housing affordability reaching record lows and another rate rise potentially on the cards, co-ownership is an effective way to combat these constraints," Wizard Home Loans chairman Mark Bouris said.



Some 41 per cent of first home buyers said high property prices were the main factor behind co-ownership, although social commentator Bernard Salt remarked that it was Generation Y's reluctance to let go of their decadent lifestyles that had also added to demand.



A whopping 86 per cent said the government was not doing enough to help.



Almost half of respondents said the First Home Owners Grant should be further tailored to suit co-owners, while 23 per cent said the government should work on more affordable housing.



The figures suggested the First Home Owners Grant was not a big drawcard for first time buyers, as two out of three said they would forgo it to buy with someone who has already purchased property.



Wizard, which initiated the research, announced that it had joined forces with co-ownership specialist PodProperty to better serve this growing segment of home buyers.



Mr Bouris said while 84 per cent of respondents had agreed legal agreements were important in co-ownership situations, many did not have one.



PodProperty offers guidance and pro-forma 50-page legal agreements for those wishing to enter in a co-ownership contract.

Wizard said the partnership would facilitate first home buyers in organising affordable legal advice.