THE state of the housing market has been making the headlines on an almost weekly basis.

As someone who made a recent transition from rent payer to first-time buyer, it is a subject that has occupied my mind for many months.

For thousands of first-time buyers (FTBs), anxiety will be increasing with every reported price hike.

The Halifax house price index for the first quarter of 2002 shows that the average property in York costs £110,950, and £107,650 in the rest of North Yorkshire.

I moved to York last August from Bath, where property was so far out of my league that it was a major contributing factor in my relocation.

So York's property boom was put into perspective for me, particularly as the same house I bought on the outskirts of the city three months ago would have been about £100,000 more expensive in Bath.

Even so, if I had been looking for a property in York on my own and not with my boyfriend, I would still be paying rent.

Lesley Beattie, owner of Quantum estate agents in Walmgate, described the situation for FTBs as the worst she has ever seen.

She said: "The traditional FTB houses have increased in price but the salaries haven't gone up at the same percentage rate.

"They can't afford what they could have afforded 18 months ago and the FTB properties are getting snapped up by investment buyers who are then renting out to prospective first time buyers."

According to Lesley, the standard mortgage rate of 2.5 times your salary is now being extended by lenders to four or even five times the salary.

Many buyers - young couples and, increasingly, groups of single friends - desperate to get on the property ladder, are tempted by the current low interest rates but still have to get help from their parents.

Even on current terms, people would require a hefty deposit and have to be earning a minimum of £22,000 to afford the average property in York.

John Waterhouse, director of Hunters estate agents in York, said a lack of housing was at the root of the problem.

He said: "York has become a very popular place to buy property and while that continues, prices are going to rise, unless we build more houses and release land for development."

John Hocking, assistant director of housing at City of York Council, said affordable housing was a priority and developments currently under consultation include an affordable element.

He said: "Each year we help fund a development programme with housing associations in the city, who are hoping to build 65 affordable homes in the near future.

"We are keen to increase the amount of affordable housing in the city."

Updated: 11:42 Saturday, May 04, 2002