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AAP
AAP
Politics
Jacob Shteyman

No smoking gun to link deposit scheme, home price spike

Economists warned the expanded deposit guarantee scheme would help drive up property prices. (James Ross/AAP PHOTOS)

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.

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