SALTBURN had the fourth biggest increase in house prices anywhere in the country this year, according to mortgage lender the Halifax.

The seaside town saw prices rise by 48pc compared to last year, with the average house price jumping from £77,452 to £114,479.

William Forth, of estate agents Cook and Forth, believed the increase was due to three main factors. He said: "There are a lot of character properties because there are so many Victorian houses, and people like that. There is very little new building, which means people have to choose from the existing housing stock, and the schools are considered very good by most people."

Mr Forth said he thought house prices in the town had now reached a plateau: "These periods of increase seem to be slowing down," he said. "but you never know what the future holds."

Chris Stonock, regional manager of Halifax Estate Agency, said: "The demand for properties in the area continues to push up house prices."

The annual Halifax survey featured 613 towns in England, Scotland and Wales, with Bellshill, in Strathclyde, recording the biggest leap in prices at 70pc.

Although the South of England is still the most expensive place to buy property - Gerrards Cross in Buckinghamshire is the dearest with an average house price of £627,660 - the survey shows the North-South divide is closing.