HOUSE sellers in York are "in safe hands" despite warnings that prices could plummet by 20 per cent over the next three years, according to estate agents in the city.
Barclays, the UK's fifth-largest mortgage lender, set alarm bells ringing among buyers around Britain by forecasting an eight per cent drop in 2005, with further falls in 2006 and 2007.
But Nick Lawrence, a branch partner at William H Brown in York, said that demand for city properties would prevent prices following the predicted downward trend.
"York will keep its head above the water because of the demand," he said. "We have people regionally and nationally coming into the city looking for property. House prices do go down, but the supply and demand specifically in York puts it in safe hands."
He conceded that house prices had dropped, but said that was to be expected at the end of a buoyant market.
"Even if house prices start falling nationally next year, certainly the prices in York will fall far less than in other areas.
"There are no alarm bells ringing. We have people registering every day."
Keith Hollinrake, a director of Hunters Estate Agents, said: "There's no doubt that over the last five to six months the market has tightened as a result of interest rate rises during that period. There have been five interest rate rises over the last 12 months.
"The market has cooled down, but it was so buoyant that it was unsustainable at that level over a long period."
He predicts the market will start to rise again by Spring next year and believes there will only be one more interest rate rise, if any, before a downward trend.
Richard Wiles, associate chartered surveyor at Barry Crux and Company in York, agreed that the market in York was "slowing down" but said Christmas was traditionally a quiet period for the industry
"It is uncertain what's going to happen, but there's do doubt that the market has flattened out," he said.
"But we are not marking house prices down enormously. We saw a 20 per cent growth between December last year and July this year. It has probably fallen by five per cent since July. The true test will be the period after Christmas."
Updated: 08:51 Tuesday, November 23, 2004
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