HOUSE prices in Selby rose unabated in September as the national housing boom continued to soar, according to a survey published today.

The Halifax's monthly survey showed prices jumped by 4.3 per cent during the month, as low interest rates and falling unemployment continued to underpin demand.

The rise, which matches the record 4.3 per cent seen in May, means annual house price inflation jumped to a hefty 24.2 per cent.

In Selby, Richard Taylor, from Keith Taylor Estate Agents, Gowthorpe, said minimum prices for a small terraced house had risen from £40,000 to £60,000 in just 18 months.

But experts predict the Selby market has begun to "cool off".

Ross Potter, a partner at Ashtons Estate Agents, in Finkle Street, Selby, said: "Over the last 12 months, prices rose by up to fifty per cent across the board. The situation is just starting to settle down a bit."

John Waterhouse, of Hunters estate agents, said house prices in Selby were being pushed up because of a knock-on effect from York's sky-rocketing property market.

He said although the south and east side of York has traditionally been seen as an area for cheaper property, the large number of people looking for affordable housing was affecting prices.

"The villages between Selby and York, as well as the town of Selby itself, have seen some tremendous price rises over the last 18 months.

"Buyers are willing to travel further afield for property and the planned Selby bypass will accentuate this trend," he added.

The national rise has taken the average property price to £116,801.

Earlier this week, Nationwide Building Society's monthly index showed prices rose by 2.1 per cent in September.

Martin Ellis, group economist at Halifax, said: "The market continues to be driven by a combination of powerful factors.

"The low level of interest rates and falling unemployment are stimulating demand. In addition, there has been a marked shift in sentiment regarding the outlook for interest rates in the past few months.

"Homebuyers are no longer expecting an imminent rise in rates, with increasing speculation that the next move in interest rates may indeed be downwards."

Updated: 14:14 Friday, October 04, 2002