Property prices have recorded the sharpest growth in more than two years after the government's deposit guarantee scheme ignited demand for entry-level homes.

The first-home buyer scheme, which was expanded at the start of October, appears to have turbocharged the growth in house prices that had already been occurring since the Reserve Bank started cutting interest rates in February.

In October, home prices grew by 1.1 per cent nationally - the fastest monthly growth rate since June 2023 - according to property analytics firm Cotality's latest home value index, published on Monday.

While there was still a lack of data about uptake levels for the deposit guarantee scheme, Cotality research director Tim Lawless said it was likely the scheme was amplifying demand.

"It's a pretty clear acc

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