THE 2004 residential property market has got off to a busy start and given estate agents the chance to predict how the year may shape up.

Although many of the national mortgage lenders are already saying prices will rise, agents in Basingstoke are not reckoning on any significant jump - in fact, they are expecting a level playing field.

Charlie King, managing director of Carson and Company, said: "All the signs are extremely positive. Even with predicted increases in interest rates, the cost of borrowing is still exceptionally low.

"We have a healthy UK economy and, as highlighted by the Chancellor's pre-budget statement, a Government anxious to keep it that way in the run-up to the next General Election."

He added: "My overall assessment of the market prospects for 2004 would be almost the reverse of what we saw in 2003 - in other words, a very strong first half of the year, followed by a more stable and steady market by the second half."

Predicting the future is never easy, but Robert Plant, manager of Savoy Estates, believes: "The outlook is promising. Basingstoke is expanding and has the privilege of being a town with low unemployment and opportunities to attract more homemakers.

"The key to a strong market is affordability and availability, especially for first-time buyers. Hopefully we will see more Government incentives to promote and support this issue."

Mr Plant predicts that there will be an increase in people vacating their home and moving into rented accommodation to put themselves in a strong purchasing position and to break chains.

This would also maintain a pretty strong lettings market for rental property.

Michael O'Shea, the head of Keel Barrett, sees a continuation of the trend for stable prices and demand being driven by low interest rates.

He said: "The ongoing production of new properties around the town, assisting supply, should provide a well-balanced market."

Keenly-priced properties will sell well in 2004, says David Bennett, residential sales manager of Simmons and Sons. Discerning purchasers will keep the lid on prices.

He said: "I predict a sensible but buoyant market for the new year. As long as we have no major events, we could have a stable market."

Bob Hart, local director of Bradford and Bingley Poulters, said: "I think prices will need to be very keen for a really busy market - apart from the country homes and period cottage segment, which I expect to dramatically outperform other areas of the market.

"Villages such as Upton Grey, Sherfield-on-Loddon, Sherborne St John, Greywell, Mapledurwell and Odiham will attract London buyers.

"It is expected that City bonuses will be good this year and that will prompt strong sales in the period and single detached house markets."

But he warned: "Much will depend on whether interest rates rise again early in the new year and what impact this has on consumer borrowing and credit levels."