WHAT could be York's cheapest home has been snapped up by property developers.

Now the search is on for York's new lowest-priced house after reports of rocketing prices for first-time buyers.

The Evening Press yesterday featured reports of a home in Fossway on the market for £75,000, which was believed to be the cheapest property on the market in York.

The property suffers from subsidence and needs major work costing about £20,000 to underpin its foundations.

But it has been purchased by a developer for renovation.

"At the moment that's definitely the cheapest house we have on our books, and we think it's the cheapest house in the York housing market," said Stephenson's negotiator, Diana White.

"This is the cheapest home we have had on the market in York for quite some time."

She said the house had attracted many inquiries from desperate first-time buyers looking to find a foot-hold in the market.

But she said it had been bought by a developer who could manage the major repair work easily.

"You can't get anything in York for that kind of money, the nearest properties we have had to that in price have been snapped up overnight," said Mrs White.

Julie Martin, of first-time buyer specialists Pink, who are linked to Hudson Moody, said Pink was raising its ceiling from £125,000 to £130,000 to accommodate the rise in house prices.

But she said the agency still had some very good properties at the lower end of the market, with the lowest-priced traditional house, a two-bedroom terrace in Carnot Street, Leeman Road, York, at £105,950, or a one-bedroom quarter-house in Hawkshead Close, Acomb, York, at £94,950.

"These are very nice starter homes, this would definitely be a good place to be looking for the most reasonably-priced homes," she said.

Halifax estate agents is currently offering a three-bedroom terrace property in Ashton Avenue, Clifton, York, for £94,950.

Hunter's estate agents is offering a three-bedroom, end town house in Middleham Avenue, off Huntington Road, York, for £104,950.

Are these York's cheapest houses? Phone the Evening Press newsdesk on 01904 567131 if you know of a house in York for sale at a lower price.

Updated: 10:39 Friday, February 27, 2004