National property prices have risen by their highest monthly rate in two years, putting the government's first home buyers scheme under fresh scrutiny.

New figures released by property insights platform Cotality on Monday revealed Australian home values rose 1.1 per cent nationally in October, the fastest monthly gain since June 2023.

The data comes a month after Labor's first home buyers scheme kicked in on October 1, allowing young Aussies to break into the housing market with a deposit as low as five per cent.

There are concerns the home deposit scheme, one of Labor's key election promises, was a contributing factor to the spike in growth in the property market.

The report said low housing supply had contributed to last month's competitive market conditions.

Shadow housing minister

See Full Page