SIGNS that the flat York and North Yorkshire housing market is beginning to pick up again have been reported by market experts.

The number of new buyer inquiries in the region rose in June for the third month in succession, according to the Royal Institution of Chartered Surveyors' monthly housing report.

It also found the North Yorkshire region is leading the rise in the national housing market, which is also showing signs of recovery.

But York estate agents were cautiously optimistic today, saying that there was no clear trend in the city at present.

Kevin Hollinrake, of Hunters, said: "We did see an encouraging number of enquiries in June, but its tracked back in July. There's no distinct pattern, just a steady market."

John Wroot, of William H Brown, in Goodramgate, said: "Last year was definitely a lot busier without a doubt. People are wary of spending money at the moment."

He said it was difficult to identify any general trend in the current market. He said: "Last month we had our best sales month this year, but this month is very quiet as far as sales go. It's very up and down."

The increase in buyer inquiries has yet to show itself fully in a rise in completed sales, at either a local or national level, but the fall in house prices has slowed to its lowest rate since March.

Edward Waterson of Carter Jonas said: "The market seems undecided as to which way it is going. On the one hand, some properties are selling successfully with prices in excess of expectations. On the other hand some property sales are proving very slow. "

Nationally, the number of sales is up five per cent since February, but remains a quarter down on 12 months ago. The RICS report, though, said national confidence was at its highest since last November.

RICS housing market spokesperson Ian Perry said: "A revival in buyer interest has been recorded across the country in June, but has come against a background of still quite subdued market conditions.

"The clear signs of a broad base economic slowdown will mean that housing demand will remain low for the rest of the year. RICS believes a modest interest rate cut is now warranted to prevent any further deterioration of the economy."

Updated: 11:11 Friday, July 22, 2005