SUGGESTIONS that house prices are set to soar in York have been undermined by statistics showing falling figures across the city.

Figures from housing website www.propertysnake.co.uk show prices are falling in York, despite claims that prices are again on the up.

The website showed a total of 471 reductions in residential properties in the York area.

Price drops in the city have even reached double figures in some places.

City centre prices have dropped by as much as 13 per cent, compared with Acomb and Heworth where the drops are almost as high at up to 12 per cent.

The drops have been recorded on a range of different properties, from one-bedroom flats to ten-bedroom houses with bungalows and terraced homes in between.

However, estate agents have given conflicting opinions about the situation.

Richard Littlefair, of Castle Estates in York, said: "I would not say house prices are particularly rising. We are treading water really at the moment, especially with the interest rates as they are."

Kevin Hollinrake of the Hunters Property Group, York, said: "We have certainly seen a slow down in the last ten months since interest rates started to rise.

"What we are seeing now is a healthy balance of supply and demand.

"We are seeing prices rising slowly, at about a level of about five per cent. This is a sustainable level.

"It's when supply and demand gets out of kilter that you start to see a rise or fall in property prices."

Nigel Naish, of Naish Estate agents and solicitors, contributed to the Royal Institute of Chartered Surveyors monthly survey. He said: "I think house prices are flattening out, partly due to higher interest rates.

"House prices will still rise, but we seem to be moving in to a period of slower growth."

Following the announcement that the University of York will build a second campus on 117 hectares of green belt land, it was feared house prices may rise due to a lack of housing.

However, Property Snake shows 42 drops in prices, even in the YO10 area of the city, where the University's expansion will take place.

Mr Littlefair said: "We would need to know what was going to be created, what is envisaged within such a massive development. We need to know what is going to be available to rent or to buy.

"We couldn't really comment until we know what will be in there exactly. If it were to be all residential that would be a disaster for York."

Mr Hollinrake said: "A massive development such as this can have a significant impact especially if it's over a shorter period."