THE housing market in Worcester remains active and is making a promising start in 2005, according to latest figures.

The Royal Institution of Chartered Surveyors (RICS) found that house prices in the city fell in 2004, but remained stable in the last part of the year and did not look like dropping further in the near future.

If this happens, it will buck the predicted trend for most of the UK, where prices are expected to continue falling, but not crash.

"The current feeling in the Worcester market is quite positive and properties are continuing to sell in good time," said local estate agent and RICS spokesperson, Andrew Grant.

"This is despite the continued effects of interest rate increases, and surrounding media interest, on the national picture.

"We did not see the usual Christmas slowdown, as buyers have begun to adjust to the changes in the market and more realistic prices are being achieved.

"The outlook for the New Year looks good for Worcester, with prices continuing to stabilise and possibly even rise slightly as activity increases in the post holiday period."

Harvey Williams, national and regional housing spokesperson for the RICS, said the picture was not quite as good for other parts, but it was not doom and gloom either.

"After a strong spring/early summer, the interest rate increases have dampened the market and prices in many places will continue to fall into the start of 2005.

"It is important to emphasise that there are no fears of a crash with the three underpinning factors for a strong housing market in place - low inflation, low unemployment and comparatively low interest rates," he said.