THE onset of autumn has brought not just a fall of leaves - but of house prices, too.

For the first time in 4 years, house prices in the Yorkshire and Humber region showed a small drop in September, according to the Royal Institute of Chartered Surveyors' report published this week.

The survey shows house values are falling at their steepest rate for three years.

The decline in prices nationally is the biggest since 1995, and is a reaction to interest rates rising over the summer period - up three times in four months.

Despite this, it is unlikely that the housing market will experience a deep or prolonged downturn in prices as long as the economy remains stable and people are confident about job security, says the report.

Chartered surveyors across North Yorkshire are reporting a less buoyant housing market.

Philip Mills, of Norman F Brown in Bedale, said: "The market in this area has continued to slow down over the last few weeks and we have recorded a fall in certain categories of property. We expect this trend to continue over the next few months."

Malcolm Jopling, of Joplings in Thirsk, said: "High interest rates, together with media reports regarding house prices, have effectively stifled the market. Buyers are using this to their advantage and sellers are taking realistic offers. First-time buyers and investment buyers seem to have dropped out of the market all together."

Michael Westgarth-Taylor, of the Sanderson Taylor Partnership in Stokesley, said there was a definite change in the market which was not unexpected because of the interest rate rises. He said sales were still to be achieved but sellers and would-be sellers must be realistic.

Chartered surveyors in Harrogate and Knaresborough report the least change in market conditions.

Mike Abel, RICS North-East spokesman on housing, said: "House price growth has slowed down since May this year, with August showing the smallest rise since October 2001."

At Bishop Auckland, Stuart Allan of Broadley Coulson, said; "Houses are taking longer to sell and buyers are more discerning. Purchasers are negotiating discounts from agents' asking prices of 1pc to 3pc where houses require repair/maintenance."

For the Hartlepool-Teesside area, Ron Greig, of Ron Greig Estate Agents, said: "The market has slowed during August and prices in the middle and higher ranges have levelled out, although there is an increase in lower priced properties, with the demand coming from first-time buyers."