EVER-RISING Wharfedale house prices are beginning to show the first signs of slowing down since November 2005, according to a recent national survey.

The Royal Institution of Chartered Surveyors (RICS) reported on July 12 that in Yorkshire and Humber, 30.5 per cent of chartered surveyors said there had been a fall in house prices, contrasting with the long-running average of 22.5 per cent nationally.

New instructions to sell property in the region also declined at the fastest rate since the surveys began in January 1978.

Nationally, growth rates have more than halved, to around ten per cent. Demand has also fallen due to the impact of interest rate hikes.

RICS spokesman Ian Perry said: "House prices have finally started to cool significantly for the first time since the recent mini boom in the housing market got underway in 2006.

"The July rate increase may not mark the peak of the current interest rate cycle and earlier rate rises have still to fully filter through. A softer landing for the housing market is in store as we move into the autumn."

However, local estate agents are sceptical that the figures signify a downturn in the market, citing traditional seasonal differences and anomalies caused by the introduction of Home Information Packs.

Waite and Co managing director Paul Harrison said: "With Ilkley being a bit of a bubble things are just continuing on as normal. We have had more of a slow down in prices locally rather than a drop. There is still quite high demand and we have not had any kind of drop-off in inquiries.

"We have noticed that there have been some fluctuations due to the HIPs there was a rush to market before June 1 but now the panic is over they have continued to improve the properties."

"Unfortunately for first time buyers it is looking a bit grim. We are talking about £150,000 for the cheapest properties so it is well above what first-time buyers can afford to raise with a mortgage."

Dale Eddison partner William Eddison said it could be the start of a bigger fall in the market, but cautioned against over-optimism based on one month's figures: "We have seen a slowing in the market during the last six to eight weeks from the frantic levels we were seeing from February to May, but it is still a seller's rather than a buyer's market.

"How much is due to the interest rate rises this year and how much is just people concentrating on holidays rather than houses is hard to say right now - it will be autumn before we get a true flavour. When the peak will start to crest is anybody's guess, but it will have to go down."

Dacre, Son and Hartley lettings director Patrick McCutcheon also said he was wary of treating the news as heralding significant change: "There has been a slow down in the rate of growth but that is not the same thing as a fall in prices. The slowdown is not necessarily a bad thing and could add long term stability to the market.

"Is it good news? I suppose for a struggling first-time buyer every degree the bottom rung of the housing ladder gets closer is a good thing."