HOUSE prices in York will continue to soar over the next four years - but first-time buyers will be able to breathe a sigh of relief.

Figures released by independent mortgage magazine Your Mortgage, reveal York will continue to enjoy a buoyant housing market, with prices increasing by 17.1 per cent.

But that increase will be a slowdown on the recent boom in which property prices rose by more than 50 per cent in barely two years.

The magazine based its research on population trends, projected income levels, employment forecasts and interest rate predictions.

A top York estate agent said the stabilising market was good news for buyers, sellers and estate agents alike. The slowdown was reflected across the county in the survey, with prices in North Yorkshire rising by 15.7 per cent, Hambleton homes gaining an extra 15.2 per cent, and Selby homes increasing their value by 16.9 per cent.

Kevin Hollinrake, of Hunters Estate Agents, which has offices in York, Ripon and Easingwold, said a levelling of the market would mean consumers would not have to fear a bust wiping out values.

"These figures would represent a five per cent yearly increase. If that happened, we would see a more stable growth at a nice, sustainable level.

"If the boom of the last few years had continued, that would have inevitably led to a bust in the market. We would be pleased with these figures. First-time buyers would not be priced out and people could still afford to buy and sell."

Andrew Stuart, editor-in-chief of Your Mortgage, said: "These latest house price projections reflect a projected cooling down in the market over the next few years.

"Our latest predictions show that property prices in some areas are continuing to level out and even fall slightly, before picking up again next year, albeit slowly.

"We would urge home owners not to panic as we don't expect to see the type of collapse in the housing market that we have seen on the stock market over the last few years.

"We would advise people considering stepping on or moving up the housing ladder and recent borrowers to take a long-term view."

Updated: 13:51 Friday, September 03, 2004