POOLE is one of the top ten "cold spots" in the country for house prices, according to a survey by a Sunday newspaper.

The value of an average house in the town went up by 0.47 per cent or £1,042 from June to September 2004, said the survey, published in the Sunday Express at the weekend.

Bognor Regis had the smallest increase in value, of 0.06 per cent or £107, while Ellesmere Port in Merseyside, had the largest - 17.18 per cent, or £20,477.

The area has seen some of the largest house prices increases in the past few years.

Estate agents in Poole told the Daily Echo they have noticed a marked slowing down in prices over the past six months.

David Chinery, senior negotiator at Poole-based Scott Baines Estate Agents, said: "At the moment, the market's treading water.

"Things are still moving for the correct price, but a lot of people are trying to put property on the market for the price they would have done six months ago and the houses that are moving are the ones that are priced correctly."

He said this may be down to confidence, with interest rate hikes in the last few months, but added that the steep rise in prices - which is causing particular problems for first time buyers - was going to have to stop sometime.

"If it keeps going up, you see off a lot of buyers," he said.

"About five or six years ago, you could have bought a two-bedroom property for £60,000 and the same property now is £150,000 or £160,000.

"If someone who's earning £15,000 to £20,000 a year goes to a mortgage adviser asking them for a mortgage on a £160,000 property, they'll be laughed at, so it's very difficult.

"A lot of people want more for their property than what it's worth, but at the end of the day, you have got to be realistic if you want to sell your house, by comparing it to the price of houses that have sold recently."

Mr Chinery said it is a buyer's market right now, so people who are considering buying should make offers.

However, he added that he thinks the market should pick up again after the Christmas lull, and said a more accurate picture will probably emerge in the new year.

First published: November 16