A SURVEY has revealed the stark regional divide in house prices with properties in some parts of the North-East losing more than half their value in the last ten years.

Prices in the North-East and even parts of leafy North Yorkshire have declined by more than ten per since the onset of the financial crisis.

Of the top 20 areas in England and Wales seeing the biggest percentage decrease in house prices, six are in North Yorkshire, Durham or Teesside.

The greatest fall occurred in North Ormesby, Middlesbrough, where the average house price is just £36,000, a 60 per cent drop on 2007’s figure of £57,600.

Another area seeing a major decline include Horden, in east Durham, where the average price for a residential property is now just below £40,000, a 57 per cent decrease on the figure of £74,000 ten years ago.

Meanwhile, in Ferryhill average values are down 56 per cent to £44,000, BBC analysis of Land Registry data revealed.

Parts of North Yorkshire have also not been immune to the decline with Brompton-On-Swale and Reeth and Arkengarthdale experiencing 38 per cent falls in house prices.

Only the South East and the East of England have seen continuously rising property prices over the last decade.

The Dalgarno, Kensington and Chelsea area of West London experienced the steepest price rise over the period with the average house there now costing £1.2m.

That is 33 times the cost of the average house in North Ormesby.

Latest figures from the Office for National Statistics indicate that house prices across the UK rose by five per cent in the year to August, taking the average price of a property to £226,000.

Teesside estate agent Michael Poole, who has properties for sale in North Ormesby, said it was a “sign of the times”.

He said the problem in areas like North Ormesby was that the mix between people who lived in homes they owned and non-owner occupiers was out of balance.

Mr Poole said: “You have a mixed population and landlords who are purely there for investment income rather than being part of the local community.

“You get to a point where the prices do drop to a certain level, although it may have bottomed out.

“Nine times out of ten what we are selling about the average £40,000 mark is going to an out-of-town investor.”

Lee Percival bought his two-bedroom home in Eden Court, Horden, in 2008 for £113,000.

It is now worth about £85,000.

He told the BBC he felt “trapped” and regretted buying it.

He said: “My wife loves it, but I feel like we’ve made a loss to be honest.

“I have spoken to a neighbour who was hoping to sell their property and they said they have ‘no chance’, they cannot get anybody to buy it.”

John Paul, managing director of Castledene Sales and Letting, based in east Durham, said if Mr Percival stayed in his home the price would eventually increase, but it may take up to five or ten years.