PROPERTY prices in Yorkshire are falling more slowly than anywhere else in the UK, a report showed yesterday.

The Royal Institution of Chartered Surveyors' (RICS)' monthly housing survey for the region showed that, although house prices went down in December, the fall was less than anywhere else, except Scotland.

Nationally, 37 per cent more chartered surveyors reported a fall in house prices than a rise in December.

Surveyors expect house prices to weaken further over the next three months, with confidence at its lowest since October 1998.

David Phillip, of Dacre Son and Hartley's Harrogate branch said last month's drop had been the first noticeable slowdown over the festive period in years.

"Although, as the market does not appear over-supplied, normal activities are expected to prevail as we approach spring," he said.

However, Edward Waterson, of Carter Jonas's York branch said that the jury was still out on how the market would develop this year.

"December was dead and although there was little evidence of further price increases, there still remains a shortage of certain types of property on the market," he said.

Ian Perry, a spokesman for RICS, said: "With the economy sustaining moderate growth, the conditions for a mild pick-up in the housing market are in place for 2005, although any further significant rise in interest rates will knock back confidence."

The RICS forecasts a modest recovery in house prices across the country and that steady interest rates and a favourable economic backdrop will lead to a three per cent rise in prices this year.