HOUSE price growth in Yorkshire is at its slowest rate since March 1989, according to the latest survey by the Royal Institution of Chartered Surveyors (RICS) published today.

A steady slowdown in house-price inflation has been occurring since October.

For the three months to June, ten per cent more surveyors reported a rise in prices than those who reported a fall.

That compares with a net 19 per cent who reported an increase in May and a high of 92 per cent in March last year.

But in York and North Yorkshire estate agents are reporting that after two years of big price inflation prices are now steady.

Jon Wright, a director of Hunters Estate Agents, said today: "The market at all our eight branches in York and North Yorkshire is still very, very busy, but prices are remaining relatively level and I suspect that with low interest rates it will continue that way for some time.

"In other words prices have become competitive and realistic."

Lesley Beattie, of Quantum estate agency, in Walmgate, York, said: "The market is still very active in York, but prices are remaining rock steady.

"I'm glad because I believe it was getting out of hand, soaring beyond the pockets of most would-be first-time buyers. Now, given that interest rates have just reached a new low, this should give York first-timers some hope and the opportunity to buy where they live rather than attempt to find cheaper properties outside the city."

She said that demand had temporarily slowed because of school holidays - "that's normal because parents either leave the city or have their hands full in other ways" - but she expected the pace to hot up again over the next few weeks.

"We have people who have timed their moment to put their homes on the market at the end of the school holidays at the beginning of September."

Updated: 10:12 Wednesday, July 23, 2003