COMPETITION to buy a new home in the run-up to Christmas is increasing across Yorkshire, according to the Royal Institution of Chartered Surveyors (RICS).

The number of new homes coming on the market in the Yorkshire and Humber region has fallen for the first time since April, while nationally available property is now at the lowest level since June 2002.

Edward Waterson, of Carter Jonas in York, said the falling "new instruction" numbers were causing concern.

He said: "There has been a remarkable extension to the autumn season, reflecting interest in some long-standing instructions - lack of stock may become a problem."

Other North Yorkshire surveyors reported a temporary slowdown with the approach of Christmas.

John Haigh, of Lister and Haigh in Knaresborough, said: "There is a reduction in buyer inquiries and marketing appraisals in the run- up to Christmas.

"Higher interest rates, and the threat of further rises, have had a depressing effect on the market."

Edward Astin, of Edward G Astin and Associates in Whitby, said: "The market is still buoyant, but December is expected to slow down.

"Signs are still good for the New Year. Lots of cash is being invested in the area from outside destinations."

There had been a slight decline in the number of people looking to buy in the run-up to Christmas, but the underlying demand remained fairly stable, according to RICS.

RICS housing spokesman and chartered surveyor Ian Perry said: "The slight interest rate rise in November, and talk of a rising trend doesn't seem to have put off buyers or sellers.

"Everyone seems confident that more property will come on to the market in the New Year, but intense competition will remain if this is accompanied by an increase in sales activity."

Experts at Halifax Bank of Scotland have predicted that prices in Yorkshire are set to rise by 12 per cent next year with 2004 being the "year of the North".

Updated: 08:28 Thursday, December 18, 2003