HOUSE prices in York have been levelling off since the late summer, according to city estate agents.

The news comes in the wake of a national survey published today by smartnewhomes.com, which recorded an average fall of 3.1 per cent on the price of a new home over the past month.

The survey suggests that consistent interest rate rises and market speculation have led to a more cautious attitude among homebuyers, meaning house-builders have had to adjust their selling prices.

But Kevin Webb, partner at Churchills estate agents in Bishopthorpe Road, said the property market in York was stable for the time of year.

He said: "Since August, prices have generally levelled off in York, falling only slightly in outlying areas where there are a lot of properties for sale.

"Traditionally, the last two months of the year are a quiet time for the property market. There is also caution among people seeking buy-to-let properties - they seem to be sitting on the fence, waiting to see if interest rates go up again, which I doubt they will before next year."

Adele Beattie, of Quantum estate agents in Walmgate, said: "The property market is much quieter just now because we are getting close to Christmas. Prices seem to be levelling off, rather than falling in terms of the actual value of the property."

But she added that the popularity of new apartments in York showed no sign of abating, with the average price of a two-bedroom city centre apartment currently standing at around £160,000.

"The flat market is more of a buyers' market than it ever was. And the more flats that go up, the more competition there is to sell them, which affects the prices," she said.

A spokeswoman from Carter Jonas LLP, in Micklegate, said: "From what we have seen, there has been a plateauing off of house prices since late summer or early autumn."

For house-sellers, advisers at Hunters estate agents are presently quoting sale prices at "realistic, instead of speculative" levels.

George Wise, market researcher for Hunters New Homes, said: "Given the more cautious economic climate, we felt we could no longer speculate on rising prices, as we did when the market was stronger."

Updated: 10:42 Monday, November 08, 2004