NORTH-East MPs escaped having to pay over any “profits” from taxpayer-funded homes – because of the continued property slump in the region.

A total of 29 MPs have made payments totalling nearly £390,000 to cover any capital gain made over a two-year period, Parliament's expenses watchdog revealed.

And one – Conservative Stewart Jackson – faces legal action after disputing the £54,000 he has been judged to owe and refusing to pay up.

MPs were banned from claiming Commons expenses to cover mortgage interest payments in May 2010, in the wake of public anger over abuses of the system.

But five North-East and North Yorkshire MPs were among 71 with mortgages who were granted “transitional arrangements” for two years, through to last summer.

In return, all agreed to repay a share of any profit made over that period on the value of their home, even if they chose not to sell up.

Some have made huge payments, including Conservative David Jones (£81,446) and Democratic Unionist Gregory Campbell (£61,403).

But Labour MPs Helen Goodman (Bishop Auckland), Dave Anderson (Blaydon) and Ronnie Campbell (Blyth Valley) were judged to have made no capital gain.

Neither did David Miliband, the former South Shields MP – but Conservative Robert Goodwill (Scarborough and Whitby) paid £4,963, by last November’s deadline.

Both Ms Goodman and Mr Miliband claimed mortgage interest for properties in their constituencies, according to the Independent Parliamentary Standards Authority (Ipsa).

In the North-East, property prices continued to fall between 2011 and 2012, even while they bounced back in the South and parts of the Midlands.

Ms Goodman confirmed she would have happily repaid any capital gain, but added: “In fact, the surveyors found the value of my property was down.”

Properties were valued in 2010 and again in 2012. The amount MPs had to repay depended on how much they had claimed, as well as any change in the property's value.

Mr Jackson, who claimed £32,494 over two years, launched a fierce attack on Ipsa, whose actions were “heavy handed and disproportionate and are clearly intended to bully me into submission”.

The MP said the watchdog had assumed his property rose by almost 20 per cent in value, while others in his constituency fell by three per cent over the same period.

Mr Jackson said: “Ipsa have negotiated with 70 other MPs in a secretive and arbitrary manner but in respect of my case, regrettably, they have refused to negotiate.

“I am merely seeking fair play and consistency and will pursue legal action to receive it.”

Some MPs are still repaying money, including Conservative David Willetts and Labour's John Denham, who have not sold their properties, and Lib Dem Andrew George.

In 2010, Durham North’s Kevan Jones sold his London home, in advance of the new rules – handing £40,000 from the sale to charity.