ESTATE agents in York say house prices in the city are continuing to soar, despite doom-laden predictions from a leading financial expert.

According to London investment guru Tony Dye - who earned the nickname "Dr Doom" after predicting the end of the dot.com era - property prices in Britain are set for a dramatic fall.

The fund manager estimated that prices in London would fall by 30 per cent over the next five years, with the rest of the country following the downward trend.

But according to the Halifax House Price Index, property prices in Yorkshire and the Humber continue to grow, with a 28.3 per cent increase over the past 12 months.

The figures show that the average house in York is now worth £182,007, a massive 14 per cent more than last year's £159,085. Across the Yorkshire region, the average house price is now £106,421 - breaching the £100,000 barrier for the first time.

Hazel Beattie, of Walmgate-based Quantum Estate Agents, said prices in the city were still enjoying a steady rise, with houses under £150,000 being snapped up within days of being put on the market.

Responding to Mr Dye's predictions about an imminent crash in the market, she said: "There's nothing to indicate that's true - it's not the feeling that we are getting.

"The investment market is so strong - we can't see any problems.

"There are still more buyers than there are houses available. For houses under £150,000, demand is hugely outstripping supply."

Ms Beattie said the top end of the market was also healthy, although demand for houses there was not as strong as at the lower end.

Peter Moody, a partner with Hudson Moody and Pink estate agents, dismissed Mr Dye's predictions as "crystal-ball gazing".

He agreed that the first-time buyer market was still extremely competitive, saying the threshold for prices in the sector could rise by up to £20,000 by the end of the year.

But, he said, prices in some sectors - such as flats and family houses in the £200,000 and £300,000 bracket - were staying fairly level.

Chris Stonock, regional manager for Halifax Estate Agents, said: "The York market remains very healthy at all levels."

Updated: 08:26 Tuesday, April 20, 2004