Swindon estate agents are celebrating the end of a bumper year as mortgage firms predict a slowdown in the housing market during 2002.

The UK's biggest mortgage lender, Halifax, has announced an expected 50 per cent drop in the rise of house prices next year.

The forecasts indicate that the price of a house would rise by just five per cent, compared to this year's 11 per cent increase. This comes as no surprise to Swindon estate agents.

Philip Reeve, a partner in Old Town's Philip Andrews estate agents, said: "I would say the increase was nearer 15 per cent this year as Swindon housing took time to pick up on pricing a couple of years ago.

"Each year you tend to find there is a certain amount of people who move house. If a lot buy and sell one year, it normally balances out the following year.

"2001 has been a very active year. We have beaten all previous figures and it has been our best year.

"House prices in Swindon levelled off about five months ago so I would say the Halifax prediction is satisfactory. Obviously we would welcome a more stable market but while interest rates remain low, people are more inclined to move."

Philip Andrews has had dealings with more than 700 properties this year in contrast to 500 in 2000. The estate agent predicts a rise to 1,000 in the coming year.

Charles Harding has branches in Gorse Hill, Old Town and Commercial Road. Jon Harding, a partner in the firm believes the market will continue to prosper in the New Year.

He said: "Usually there is a seasonal slowdown but there has been no sign of that this year. Figures for November and December are up on last year which we expect will provide a steady momentum for next year. Our average increase from last year was around eight or nine per cent."

And Taylor's Estate Agents in Commercial Road reported a 35 per cent increase in business from 2000.

Branch manager, Daniel Watkins, said: "We had a very good year all round. Last year we dealt with about ten mortgages a month while this year it has been closer to 17. House prices rose by between ten and 15 per cent.

"The average price of a three-bedroom terraced house in 2000 was £83,000 compared to £92,000 this year.

"I don't think there will be much change at the start of the year but I would predict that house prices will increase after spring. For people looking to buy houses, the earlier the better."

Swindon-based Nationwide said a total of 1.44 million houses had been sold across the UK during 2001 which was roughly the same as in 2000. The building society will be releasing its predictions for 2002 on January 3.