HOUSE prices in Darlington are being pushed up by investment buyers - making it harder for first-time buyers to get on the property ladder.

The average cost of buying a home in Darlington has shown the second highest increase in the country over the past year, jumping by more than 34pc, according to figures issued by the Land Registry.

The lower end of the market experienced the sharpest rise, with the average price of a terraced house in the town going up by £21,118 - an increase of 44pc. Most are now on sold on the market for at least £60,000.

Judith Todd, sales director at Westpark Estate Agents in West Auckland Road, said prices were being pushed up by an increase in the number of people looking to invest.

"In the higher end of the market the prices are fairly static, and it's in the middle and lower range that things are really moving," she said.

"Investors are snapping up the cheaper properties so there's not many affordable houses out there now for first time buyers.

"A shortage at the lower end really puts a halt on the rest of the market, meaning properties actually up for sale are going for higher prices."

While the property market in the South may be cooling off, property prices in Darlington and other parts of the North show no sign of slowing down.

Estate agent Peter Freitag said: "There is pressure on people to bring their investments away from the overcrowded South-East and towards the North. It's a question of money chasing money.

"The market still has a way to rise and I think we may have another year or so of gradual increase before it levels off and starts to come down slowly.

Stephen McOwan, director of Sandersons estate agents, said investment was just one of the reasons for the increase in prices.

"The property market is always demand and supply led and at the moment there are a number of reasons why demand is up.

"A lot of first-time buyers are entering the market later in life, meaning they are more stable financially and have a larger disposable income to spend on property.

"There is also a national shortage of housing stock which is why there are so many new developments being built throughout the country.

"It also used to be the case that the sale of every house released a buyer, but nowadays things like divorces and different living arrangements means that one sale can create two or more buyers looking for properties."

Other areas in the North-East also experienced an increase according to the figures, with property prices in Hartlepool rising by almost 31pc, and in Middlesbrough up by 29pc.

The rush to invest in the North-East is seen by many estate agents as a positive reflection of the area.

Mr McOwan said: "In some areas almost 50pc of sales are going to people from outside who are looking at the area as a viable place to retire or raise a family. They are not just buying a property to make money, they are buying it to make it their home."

Mrs Todd agrees. "The changing views of Southerners towards the North have meant people are really interested in moving here," she said.

"People are realising that Darlington is a great place to live. It's become a real hot spot."