HOUSE prices in the North-East are climbing faster than in any other region in the UK, according to figures released today.

A survey by the Halifax, the UK's biggest mortgage lender, found that the average cost of housing across Northumbria, Tyne and Wear, County Durham and Cleveland had soared year-on-year by more than 36 per cent.

The increase, based on the Halifax's price index for the second quarter of 2003, was the largest in the country and saw the average house price climb to £90,807.

The value of the average house in London in the second quarter of 2003 was only 11.5 per cent higher than at the same point last year, climbing to £218,404.

House prices in the North-East were up eight per cent on the first quarter in 2003 - also the highest rise across the regions. The UK average house price for the second quarter of 2003 was £129,443.

Chris Stonock, Regional Manager for Halifax Estate Agents, said: "The housing market in the North is still very buoyant and the region has seen the fastest UK annual growth in house prices."

The Halifax found that several towns in the region had broken the £100,000 barrier with Chester-le-Street, Darlington and Durham now having average house prices in six figures.

Other findings included:

* Prices in Middlesbrough are almost 30 per cent higher than this time last year, with first-time buyers being priced out of the market in a number of areas, such as Acklam and Linthorpe;

* Realistically priced properties in Sunderland are selling quickly with new developments in and around Ryhope and Ashbrooke popular;

* The market in and around Newcastle continues to be very strong, with the new Tyne Baltic Quay apartments on the south side of the river attracting a great deal of interest.

Lee Smurthwaite, of Stuart Edwards estate agents, which has branches in Darlington and Newton Aycliffe, said: "Prices are going through the roof in some areas, but equally, other areas are lagging behind - it is all location orientated.

"The rate of growth is slowing down generally, but the market is still very strong."

Paul Reynolds, chairman of the North-East branch of the National Association of Estate Agents, said prices in some areas had doubled in two years, adding: "Property remains a sound investment. My advice to buyers is to buy the worst house on the best street they can afford."