TAX rises and the fear of higher mortgage rates have slowed down the

recovery in the housing market, estate agents reported yesterday.

A total of 43% of members surveyed by the National Association of

Estate Agents reported less business during June, compared with 22% who

reported a rise.

No one region fared exceptionally well in the survey, although

Scotland, Wales and northern England had the highest proportion of

agents reporting increased business.

''The public has had cause to take stock of late, both with tax

increases and interest rate speculation,'' said NAEA president Eva

Lomas. ''As a result, people are generally only moving house when they

really have to.

''They are not rushing to move up the housing ladder and improve their

lot as they did in the 1980s but are staying put until they can see a

real economic upturn.''