A new study which shows house prices in North Yorkshire are set to rise by 25 per cent means tougher times ahead for those trying to get a foothold in the market.

Figures from Your Mortgage magazine show property prices across North Yorkshire are set to rise by 24.9 per cent over the next five years.

The steepest rise is expected in Selby, where prices are set to increase by 27.1 per cent by the end of 2005.

Prices in Hambleton are expected to increase by 25.4 per cent over the same period and those in Harrogate and Richmondshire are set for a 25.1 per cent rise over the next five years. The lowest projected increase is North Yorkshire is in Ryedale, where prices are predicted to rise by 22.8 per cent by the end of 2005. The figures have been prepared by independent data analysts, Prophit, using historic property prices from the Land Registry and a range of official Government data, including employment, population shift and interest rate forecasts.

Andrew Stuart, Your Mortgage's editor-in-chief, said: "The healthy increase in North Yorkshire's house prices reflects the general economic picture. We are expecting neither a collapse in prices due to a recession or a continuation of the dramatic property price increases seen in some parts of the country over the last few years."

An investigation, last month, revealed increasing numbers of first-time buyers were being priced out of the housing market in York.

One of the causes blamed was that more people were paying cash to buy properties which they then let out. Homelessness groups in the city have also warned that soaring house prices could have serious implications.

Homeowners were today poised for another boost over interest rates with a quarter point rate cut to 5.5 per cent by the Bank of England's monetary policy committee being predicted for later this week.

Updated: 10:53 Monday, April 02, 2001