RESIDENTS hoping to cash in when the premier date in the racing calendar comes North are being warned they should think again.

Next year, Royal Ascot is to be staged in York while redevelopment work takes place at the Berkshire racecourse.

There have been reports that some residents in the city intend making money by renting out their home to wealthy racegoers at inflated prices.

But Andrew Lindsay, president of York and North Yorkshire Chamber of Commerce, said the prices being asked were "completely unrealistic".

"This idea about people expecting to let their houses, I thought it was all, to be honest, a bit of nonsense," he said.

"I have been on the web and looked at various properties and they all look ridiculously expensive."

Ascot-lets.com contains 47 properties listed for rent at £10,000 or more for a week's stay.

Steve Free, web developer at the estate agents, said it was time for people to think again about rent prices.

"It is a bit slow," he said. "We do try and ask people to be realistic. Some prices are unrealistic, but we are encouraged that it will pick up. We are still optimistic."

Gillian Cruddas, chief executive of York Tourism Board, said: "I am not totally surprised, because people will pay what they think is fair and reasonable."