THE NORTH-EAST continues to have the lowest average house price in England, according to a report.

Figures from the Office for National Statistics shows the average house price in the North East was £130,000 in July, almost £90,000 below the UK figure of £217,000.

Despite this, the average UK house price has climbed by £17,000 in the last 12 months, marking an 8.3 per cent increase from the same period last year.

Property values have also increased by around £1,000 since last month, the report found.

The average house price in England now stands at £233,000, while in Wales it is £145,000, in Scotland it is £144,000 and in Northern Ireland it is £123,000.

Across England, London continues to have highest average house price at £485,000, followed by the South East and the East of England, where house prices stand at £313,000 and £274,000 respectively.

East England recorded the strongest annual growth, with prices increasing by 13.2 per cent in the year to July 2016. Growth in London also remained high at 12.3 per cent.

Andrew McPhillips, chief economist at Yorkshire Building Society, said: “Looking to the long-term, we expect people’s desire to own a property, combined with the persisting lack of housing stock, to cause house prices to increase in the future.

“This will affect people by limiting the number who are able to own their desired home whilst also pushing up the cost of renting.”

The UK house price index said that despite the strong growth, there have been signs that the market is struggling, with several indicators pointing towards weaker housing demand and supply in recent months.

Jeremy Leaf, former residential chairman of the Royal Institution of Chartered Surveyors, said: “It is surprising that the index does not record more of a slowdown in price growth.

“On the ground we are finding that people are showing more caution than this although there is an underlying determination to get on with moving.

“People are negotiating hard and we expect that to be reflected in future surveys.”