York's housing market is booming - bolstered by the city's burgeoning business parks and its speedy rail link with London.

The prevailing economic climate in York has seen the city hailed as "a beacon for growth throughout the North" by international property consultants FPD Savills.

A market shortage of prime properties - family-sized Victorian homes in leafy locations - has seen their prices soar by around 20-30 per cent and predictions are they could rise by as much as 50 per cent in the next few years.

The influx of interest is coming from buyers wanting to leave the capital, but still with a quick rail route to London, and those brought to the area by the city's hundreds of acres of new business parks.

Andrew Black, head of FPD Savills' York office, said: "York is really becoming the place to be.

"We are benefiting from the buoyant economy in York. There's a good market across the board, in particular, for family-sized homes and homes at the top end of the market.

"The national picture is that, although buoyant, the market is not overheated in comparison with 1989.

"Prevailing economic conditions, both locally and nationally, make us optimistic for the future of the area."

The two main factors helping the property market in the York area to thrive, he said, were the city's rail link with London, via the East Coast main line, and commercial developments on business parks on the outskirts of the city.

He said a lack of quality, family-sized Victorian homes meant they were much sought after, as were properties with a river view and properties in villages within a ten-mile radius of the city.

And he said the area in an arc from Thirsk to Malton could be set to become "another Gloucestershire".

But he warned that if sellers perceived that the market was going to keep going forward and hung on to their property, it could create a bottleneck.

FPD Savills Plc released its half year results yesterday showing pre-tax profit up 69 per cent at £8.8million.

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