CLAIMS that the housing market is on the up in York and North Yorkshire have been questioned by local estate agents - who fear the market has gone "static".

Leading estate agents across York today questioned a survey from independent operator Reeds Rain, which reported a further increase in property prices since the start of the year.

Its "Property Barometer" revealed a 1.27 per cent increase in the market since January, with the average price across North Yorkshire - including York and Selby - at £132,498.

The company takes its information from house sale prices in its offices across the region.

But other city housing experts indicated that the market had actually slowed down dramatically in comparison with recent years, with some houses having to be reduced in place - reflecting an unwillingness among current buyers to purchase houses they considered to be overpriced.

Kevin Hollinrake, of Hunters estate agents, said: "The market at the moment is very steady. Previously it was much more buoyant so people could be more optimistic with pricing, but now you have to be very careful. If anything, there has been a slight fall in sales."

Nigel Favas, Reeds Rains' managing director, said: "The figures for June show that the slight increase in house prices has continued for another month this year - and proves the 'steady as she goes' nature of the residential property market in the north.

"Home buyers wary of entering an erratic and unpredictable market are being encouraged to return with greater confidence and, sellers also benefit from a market that is not see-sawing unpredictably allowing them greater certainty over price."

But Bryan Jaram, director at Jackson-Stopps and Staff, said: "People are reluctant to accept offers and buyers do not seem to have the confidence to purchase properties, which has meant that the market has become stagnant."

James Naish, of Naish & Co, said: "There is now recognition amongst sellers that they must be more sensible and flexible when trying to sell their property."

The current slowdown is not just due to the annual summer lull in house sales.

Ben Pridden of Savills, said: "Last year we expected things to pick up in September, but they didn't. We just have to wait and see what happens."

All estate agents are hopeful that last week's quarter per cent cut in interest rates by the Bank of England will bring new "growth" to the region's housing market.

Updated: 08:29 Wednesday, August 10, 2005