HOUSE prices on the east of the New Forest could soar if a dock development at Dibden Bay is rejected, councillors have forecast.

Former New Forest District Council planning chairman George Dawson told a Hythe and Dibden Parish Council Amenities Committee meeting: "The threat of Dibden Bay is holding down house prices across much of the eastern New Forest.

"But leave it for a couple of years and see - the impact will be tremendous."

His views were not shared, however, by some of the area's estate agents and Jeff Shorter of Paul Jeffreys Limited said: "Prices are not being held down at the moment and there is a very buoyant market.

"November was our best month of the year and we sold three houses between Christmas and the new year. I'm not saying prices are going up, but if the vendor gets the price right, there is a market.

"I would not say that there is any blight on the market in this area because of Dibden Bay hanging over us."

A spokesman at Bradford and Bingley Morris Dibben said: "It is not influencing house prices. It might put someone off buying a certain property in a certain street, but it is not putting people off moving into the area.

"Things usually go quiet around Christmas, but it is picking up nicely now and we have just sold two houses at good asking prices in a nice area quite close to the proposed development."

At Mann and Co a spokesman said: "We don't think prices are being held back. They are still slowly going up."