HUGE investment over the past decade has transformed the region's historic environment into a powerful economic force, a report says today.

But it identifies threats to prominent buildings, monuments and parks.

The North-East has the country's highest proportion of listed buildings at risk through neglect and decay, according to Heritage Counts 2004.

The annual audit of the state of the region's heritage is produced by the North-East Historic Environment Forum (NEHF) and published by English Heritage.

A total of 8.29 per cent of grade I and II* listed buildings in the North-East are identified at risk, compared to the national average of 3.5 per cent. Last year, six sites in the region were removed from the English Heritage Register of Buildings at Risk, but seven were added. It also reveals that York Minster attracted more visitors last year than any other cathedral in England.

The Dean of York, the Very Reverend Keith Jones, said: "It's about time people woke up to just how important cathedrals are to this country and the whole world."

The report added that the region has the highest increase in visits to historic attractions in the country, at 16 per cent for 2003-2004. And 96 per cent of people surveyed in the North-East feel it is important to keep historic features wherever possible.

Carol Pyrah, English Heritage regional director and NEHF chairman, said: "People get a strong sense of identity from the historic character of places where they live and work and more people than ever before are visiting and getting involved with their heritage.

"The North-East has the largest proportion of buildings at risk in the country and we have an alarming skills shortage at all levels."

The region's local authorities have the lowest number of conservation staff in the UK, with an average of 0.8 full- time employees, compared with a national average of 2.0.

There is also a shortfall in heritage skills such as dry- stone walling, stone masonry and stone slate roofing.

An estimated two-thirds of the historic environment is also in private hands, which means in many cases its repair and maintenance is paid for by private individuals without financial help.