Affordability down in the north-east

The average house price in the north-east of England reached its highest level in 2006.

According to new figures published in the Annual Housing Summary, the average property cost £119,000.

It comes as the number of properties sold in the region increased by 18 per cent annually, with Newcastle proving to be the most popular sub-region.

The most expensive sub-region was Northumberland, where the average property is valued at around £135,000.

Although the figures are good news for homeowners, Tom Warburton from regional development agency One NorthEast, pointed out that potential first-time mortgage holders are struggling to get onto the property ladder.

"This study highlights that housing affordability is more of an issue for the region than it was five years ago," he added.

"The regional housing issues aren't just about the supply of homes to buy or rent, but about the quality and type of homes being built - it's important that the region develops housing stock suitable to meet the demands of the 21st century workforce," continued Mr Warburton.

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