HOUSE prices in the South East are still on the up. The downside, however, is that rising cost is still preventing first-time buyers getting a foothold on the property ladder.

According to the latest market survey from the Royal Institution of Chartered Surveyors (RICS) housing prices in the South East rose in July at the fastest rate since 2002.

RICS south east director Trevor Hines said: "Rising house prices are still preventing first-time buyers from entering the market creating a property glass ceiling' for many in the region.

"The increase in interest rates will do little to dampen the market as a strong economic outlook and improving employment prospects will hold up the confidence of households. Further interest rates rises are to be expected later this year and will slow activity in early 2007 from current buoyant trading levels."

The survey did find a slight drop in new instructions for the region, but agreed sales went up for the third consecutive month, although at a slower rate than June.

And surveyors remain optimistic that the outlook for house prices over the next three months, even with the August quarter per cent interest rise, will remain strong.

A three-bedroom Victorian terraced cottage in West Wycombe Road, High Wycombe, on the market at £199,950 freehold, might well suit the first-time buyer.

The property itself has a long history, dating back to the 1860s when the chair-making industry was in its heyday. The Yellow House is at the end of a row of period cottages which were once the home of the chair-makers and is listed on Wycombe District Council's Buildings of Historical Interest list.

However it has now been sympathetically modernised with exposed beams throughout the house, and an upstairs ensuite in addition to a family bathroom on the ground floor.

A conservatory looks out on the low maintenance south-facing enclosed back garden with a circular paved patio and water feature.

It is being sold through Philip Green & Partners 01494 451010.

Further afield is Bridgeway on The Green at Cuddington in the heart of the Bucks countryside.

The thatched Grade II cottage is in a village with its own school, hall, public house, church, shop and post office.. The property comprises three bedrooms plus a study/fourth bedroom, a bespoke oak fitted kitchen opening up onto a large breakfast room and a sitting room with an inglenook fireplace.

Planning permission has been granted to build an extra bedroom and bathroom on the first floor.

More details from the Princes Risborough office of LaneFox.