House prices in Tendring need to level out to stop costs spiralling out of control, analysts have warned.

A national survey said the district was a property hotspot last year with house prices rising by 49 per cent.

But while some predict the housing market in the South East will slow down, Tendring estate agents said there was no sign of a cut in property price tags.

The Nationwide Building Society said Tendring had seen prices rise by up to 49 per cent in 2002 but that was likely to drop this year as homebuyers sought alternatives like the north east.

However, Clacton estate agent Antony James disagreed and said prices would stay high while people moved to the area from London.

He said: "Prices are not going to drop but we are hoping they will start to level out.

"Hopefully, now things will be able to steady up again. It needs to quieten down for us to see realistic prices because it is running away from us."

Mr James explained: "The problem is fuelled by people coming out of London, where property is about £200,000 to £250,000. If they can snap up a house here for £150,000 and save £50,000 for their pockets, they will."

Published Monday, January 6, 2003

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