HOUSE sales in Worcestershire are down by 10 per cent on last year, but the number of homes coming onto the market continues to rise and prices are remaining steady.

Precise sales numbers are not available, as estate agents provide only percentage figures, but the region's housing market is performing better than the national average, with sales across the country down by 22 per cent on last year.

Worcester estate agent Andrew Grant said it was now a buyer's market and there would be pressure to adjust asking prices if stock levels of available property continued to rise.

"The level of net sales is considerably less than last year during the January to June period and the level of new instructions has remained constant.

"The quantity of available property has thus risen significantly," he said.

The combination of increased stock, steady prices and, most importantly, the recent cut in interest rates could provide a window of opportunity for first time buyers to enter the market, according to Harvey Williams, regional spokesman for the Royal Institution of Chartered Surveyors.

"The Bank of England's 0.25 per cent base rate cut at the beginning of July is unlikely to have a significant impact on house prices, but it could spark movement in the market by enabling first time buyers to get a foot on the ladder," he said.

"Affordability is still a real issue for first-time buyers in the region and there is a severe shortage of new blood entering the housing market," he said.

But Anthony Champion, of Humberts said, even with current low interest rates, there was a massive gap between the prices first time buyers could afford and the bottom end of the property market, which was creeping towards £100,000. "You are probably looking at £85,000 for a traditional two-bedroom Victorian terraced house in the Arboretum," he said.

"Most of us are quite concerned about the difficulties young people face in getting their first house.

"There is a lack of supply at that end of the market and it's no good trying to pretend that first time buyers are suddenly going to get back into the market."