YORK'S property market is strong enough to resist a nationwide slowdown, according to city estate agents.

Despite a report by the Halifax, the country's biggest mortgage lender, predicting that house prices in 2002 will rise at less than half the rate of this year, local experts are confident that the market in York will not slump.

The Halifax predicted a price hike of just five per cent next year and seven per cent in 2003 - compared to an average of 11 per cent in 2001.

This follows a prediction by the Royal Institute of Chartered Surveyors, reported in yesterday's Evening Press, that house prices would climb by six per cent in 2002.

Paul Docwra, a partner at Ashtons, in High Petergate, said York's property market had always been strong, and would continue to be so over the coming 12 months.

He said: "I think the market is going to be very good next year, all the signs are there.

"It was busy right into December and money is still cheap from building societies.

"Also, York is very much of its own market. It's a very protected market, it's also been very strong, and that's why a lot of people that have money to spend on property spend it in York.

"However, I don't think there will be a significant rise in property prices, I think the rise will be inflationary."

However, Paul Foster, a valuer at Friends Estate Agency, in Micklegate, was more cautious. He said that houses at the lower end of the market were still selling immediately, but sales of those in the £100,000-150,000 range were starting to slow slightly.

He said: "The prices have pretty much levelled out. They are not increasing by any significant amount at this moment in time. Prices may even start reducing a little bit.

"But I think they will stay pretty much constant over the next six to 12 months. There has to be a ceiling and they are pretty much at their ceiling.

"York, Harrogate and Boroughbridge are good areas for people to buy, but a lot of people are moving out to the villages to the east of York because you get more for your money."

According to the Halifax report, house price increases will be the strongest in the North, North West and Yorkshire and Humberside, but will be the weakest in London. As a result, the traditional North-South divide will narrow slightly.

It also says that the terrorist attacks of September 11 forced the market to take a pause, damaging consumer and business confidence, although there was a rebound in November.

The findings are in line with a report from Nationwide, published last week, which said that growth in house prices would ease to six per cent in 2002, but that the slowdown would not turn into a slump.

Updated: 11:41 Friday, December 28, 2001