Leeds remains one of the best opportunities for property investment in the United Kingdom according to private property speculator Alec Franks, who suggests that his acquisitions in 2001 have netted him almost 30% in just over two years. What's more is that he doesn't see the demand falling in the near future. 

"Its often the case that the media try to spread pessimism about the market to push prices down but the reality is that this is a small island with a large population and an ever increasing influx of new residents. Leeds is booming and with low interest rates demand will continue to be high for at least the next two years."

In an interview with the BBC, Mr. Manning of popular Leeds estate agency chain Manning Stainton, also attributes much of this growth to the local economy: "We are very fortunate that there is very strong employment in Leeds" he said. "The economy is robust and I think Leeds is very fortunate that it has never relied on one particular industry, such as Sheffield for steel and Newcastle with ship building."

According to other prominent estate agents, there have been some signs of decline in the overall market over the last 6 months but this is merely seen as a small correction and is weighted heavily against the south of the country. The north continues to grow and Leeds in particular, has seen unprecedented growth in all sectors of the residential houses and flats market. 

Alex Bannister, an economist from the Nationwide group, says the latest figures did not necessarily mean the beginning of a house price slowdown. "It is still too early to say this is definitely the start of a sustained slowdown as over the last few years there have been three false sunsets for the housing market," he says.

"Each false sunset has seen overall consumer confidence and survey information turn significantly negative - but none led to a sustained slowdown." While the Nationwide is not expecting sharp falls in prices, Mr Bannister says affordability constraints will eventually dampen growth but not for a while yet.

"Even with a 10% deposit, more than 50% of the working population would now be unable to borrow enough to buy a typical first time home buyer property and this has helped the rental market considerably."

Leading letting agents Linley & Simpson, based at Oakwood and Horsforth, conducted a poll of  more than 300 landlords as part of a study into future trends of the market, which has undergone growth as more people, particularly young professionals, follow the European trend and buy a property later on in life.

No fewer than 51 percent of those interviewed said that they were planning to rent out more properties next year. Director Will Linley said: "This is the clearest signal that the residential lettings market in Leeds is poised to expand even further in 2003." Landlords are often told that they can expect to see a yield, that's the rental income they'll make versus the value of the property, of about 7% or 8%.

This has proven Leeds' reputation as being attractive to investors targeting the property market. With worries over the value of their shares and equity holdings, entrepreneurs are turning again to bricks and mortar as a less volatile, more secure long term investment and low borrowing rates support this.

Having said that, the Nationwide's comments on a potential slowdown contrast sharply with those of the Halifax just a day earlier. Fuelled by recent interest rate cuts, the Halifax said the average price of a house across the country was now £125,558 - 23% higher than for the same quarter the year before.

Market commentator Martin Sandon said that  uncertainty over developments in the overall geo political world situation had done little to dampen the demand for residential property, which continues to be driven by the low cost of borrowing and the lack of properties.