Property prices grew at the fastest rate in more than two years following the federal government’s expanded deposit guarantee scheme kicking in, but there is not enough evidence of a direct link between the two, housing experts say.

Home values grew at 1.1 per cent in October, which coincided with places for the five per cent deposit scheme being uncapped and property eligibility expanded, housing data group Cotality found.

Economists had predicted the scheme would boost demand and further drive up already growing prices, and the federal opposition was quick to pounce on the figures.

“The reason that (house prices) are so high right now is because Labor have failed to build supply, and they have changed the five per cent deposit scheme, and that has increased prices by 1.2 per cent in

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