A NEW survey has predicted property prices in Worcestershire will rise significantly over the next four years.

The county is expected to see a 14 per cent rise cent up to 2011, according to the forecast by independent consumer magazine Your Mortgage.

The survey says the property market shows no sign of weakening, despite recent interest rate rises and further increases anti-cipated due to higher than expected inflation.

Worcester is expected to see a 14.1 per cent rise, and Malvern Hills 15.7 per cent.

Wychavon, Wyre Forest and Bromsgrove are all predicted to see increases between 13 and 14 per cent.

Paula John, editor of yourmortgage.co.uk said: The increased price predictions we are seeing are essentially down to supply and demand. Despite the recent rate rises leading to an increase in the cost of borrowing, demand for property in Worcester-shire has not abated. This demand is largely sustained by the increasing number of households in Worcestershire - a result of growing numbers of single adult and pensioner households and migration from within the UK."

The figures are collated from a range of sources, including GDP, inflation forecasts and interest rate projections, as well as regional and national population trends, jobs forecast and projected individual income levels.

David Stuart-Smith, dir-ector of Worcester's An-drew Grant estate agency believed growth would be greater than that predicted in the survey.

He said: "The close proximity of the motorway network, high levels of em-ployment, good choice of education, expanding university, excellent retail and cultural facilities support a prediction of strong price growth for the foreseeable future - underscored by a continuing shortage of supply.

I suggest that anything less than 20 per cent growth in the next four years would be an underestimation."

Charles Robinson, owner of estate agent Griffiths and Charles, disagreed. He said: "These surveys are crystal ball reading really. Property price growth is all linked into interest rates. If the interest rate keeps going up, people won't be able to borrow as much and prices will stabilise or even fall."