The "imbalance" caused by tax rules skewed in favour of property investors is widening the financial gap between older and younger generations, industry fund-owned bank ME says.

In a rare move by a bank to enter the fierce debate about housing taxation, the lender's chief executive, Jamie McPhee, cited survey figures that found most respondents, including more than 40 per cent of landlords, would support less generous tax rules for property investors.

Housing taxation is set to be a key election issue.

ME's survey data also shows the "financial comfort" of people aged over 50 has risen significantly in the last five years; a period of cheap debt which has helped drive a house price surge.

The bank's same measure of financial comfort has shown a much smaller improvement for members of Generation Y (aged 18 to 34) and Generation X (aged 35 to 49).