HOUSE prices in the North-East have doubled in three years - ranking it first in the UK for property increases, it was revealed last night.

The region also emerged as home to four of the country's top ten property hotspots, with Hartlepool showing the biggest house price rise, recording an increase of 59 per cent in the past year.

Darlington followed a close second with an increase of 58 per cent over the past 12 months, taking the average price of a house soaring to £128,936. A year ago the average property fetched £81,365.

Halifax, Britain's biggest mortgage lender, said the North-East had recorded the strongest growth in the country, with prices rising 36 per cent in a year and 100 per cent over three years.

The average price of a house in Hartlepool is now £109,068, compared with £68,669 a year ago. Stockton, Cleveland, South Shields, Tyneside and Wearside also made the top ten, with price rises between 40 per cent and 44 per cent.

Chris Stonock, regional manager for Halifax estate agents, said: "The North-East has seen the strongest growth in the country over the last year with prices rising an average 36 per cent.

"Across the region, the lower end of the market is very buoyant, with prices continuing to increase.

"First time properties in the region saw the largest increase in prices in the UK."

The average price of a house in the North-East is £113,571 - more than five times the average wage of £20,716.

A review of the first-time buyers market published by the Halifax last month revealed only four towns in the North-East were affordable for those buying their first property.

These were Ferryhill and Peterlee, in County Durham, Hebburn, in South Tyneside, and Saltburn, east Cleveland.

But estate agents in Hartlepool and Darlington said last night that, despite the increases, homes were still available to those wanting the get on the first rung of the property ladder - but they faced stiff competition from investors.

Simon Wright, managing partner at Robinsons, said: "There is still affordable housing in Darlington.

"The typical two-bedroom terraced property is upwards of £60,000. The Denes area of Darlington is becoming more expensive than that, but it is doing very well along with the Neasham Road area.

"First-time buyers are having to compete with investment money coming into Darlington because prices are relatively low in comparison to the South."

Agents believe Darlington has become more popular to homeowners because of its strong transport links with Teesside International Airport, rail links to Newcastle and London and easy access to A1(M).

Estate agent Alan Lakey, of Manners Harrison, said the property market in Hartlepool was vibrant.

He said: "It is quite vibrant throughout the town in a lot of areas but particularly in the middle sector of £150,000 to £250,000. As far as price rises are concerned it has been a continual increase for about a year and a half."

Despite huge rises in the North-East, Halifax reported a significant slowdown in the South, with house price inflation falling from 19 per cent to nine per cent in London and from 26 per cent to seven per cent in the South-East.