THERE were up to 200 potential buyers for every house up for sale below £125,000 in York, a city estate agent estimated today.

His comments came after a major housing survey showed that more properties were being put up for sale in the Yorkshire region, bringing relief to a "tight market".

The Royal Institution of Chartered Surveyors (RICS) market survey suggests that the "tide seems to have turned", after a period where buyers were chasing few properties.

But Peter Moody, a partner in Hudson Moody and Pink in York, said that the market for first time buyers in York was still very tight, with up to 200 potential buyers of every house up for sale below £125,000.

He said: "I have got noticeably more houses on my books in the middle to upper end of the market, where I am seeing house prices just starting to level off."

John Wright, a director with Hunters estate agents in York, said he had seen a "phenomenal" number of new inquiries from buyers and sellers this year.

Edward Waterson, of Carter Jonas in York, said: "Stocks were at a record low at the start of 2004 following a frantic last quarter in 2003.

"Stocks are now being replenished, and there is an underlying strength in the market which bodes well for the rest of the year."

Across Yorkshire and the Humber, 54 per cent more surveyors reported a rise in house prices than a fall in the three months to January.

There was a modest upturn in new buyer inquiries, but the growth in new seller instructions showed a marked improvement.

House prices continue to rise steadily across the UK, particularly in northern England and Wales.

The North West had its highest prices yet recorded by the RICS survey, but the weakest pace of increase in prices continues to be the South East.

RICS housing spokesman and chartered surveyor Ian Perry said: "The tension in the housing market is lifting. By the end of last year it was a case of not enough property for the number of buyers. The hint of rising interest rates in 2004 has brought more houses on to the market early in the year, but buyers seem undeterred and as enthusiastic as ever to enter the market.

"We expect the tight market conditions to relax, as rising interest rates put a dampener on the market."

Updated: 11:17 Tuesday, February 17, 2004