HOUSE prices in the North-East have experienced the highest increases in the country - doubling over the past three years.

Darlington ranked in the country's top ten property hotspots, with a 58pc increase in house prices over the past 12 months.

The average price of a house in the town is now nearly £129,000, compared with an average of around £81,000 a year ago.

Stockton, Cleveland, Tyneside and Wearside also made the top ten, with price hikes of around 44pc.

The figures have been revealed by the Halifax, the country's largest mortgage lender.

Chris Stonock, regional manager for Halifax estate agents, said: "The North-East has seen the strongest growth in the country over the last year with prices rising by an average of 36pc. Over the past three years prices have risen by 100pc.

"Across the region, the lower end of the market is very buoyant, with prices continuing to increase. First time properties in the region saw the largest increase in prices in the UK."

The average price of a house in the North-East is now £113,500 - more than five times the average wage of nearly £21,000.

A review of the first-time buyers' market published by the Halifax last month suggested that only four towns in the North-East were affordable for those buying their first property.

These were Ferryhill and Peterlee, in County Durham, Saltburn in east Cleveland and Hebburn, South Tyneside.

In County Durham, the average house price has nearly doubled over the past 12 months from £77,000 to £113,000 - an increase of 46pc.

Many first-time buyers hoping to buy a property in Darlington have found themselves unable to afford the prices demanded by terraced homes in desirable areas such as the Denes, and have had to turn their attentions to other areas.

But Mr Stonock said affordable housing could still be found in the town and new buyers should not find themselves priced out of the market.

He said: "First-time buyers still have a better deal because prices are still low here. I do not think we are at a stage now where it is impossible to get on the property ladder.

Simon Wright, managing partner at Robinsons, agreed. He said: "There is still affordable housing in Darlington.

"The typical two-bedroom terraced property is upwards of £60,000. The Denes area of Darlington is becoming more expensive than that, but it is doing very well along with the Neasham Road area."

He warned however that those hoping to get on the first rung of the property ladder were facing stiff competition from investors.

"There has been exposure in the national media about prices in Darlington and that has had a knock-on effect.

"Investors are asking where they should put money and are looking at Darlington. It is a very good place to invest and prices are relatively low in comparison with the South."

Several reasons suggested for Darlington's rising popularity were its strong transport links with Teesside International Airport, rail links to Newcastle and London and easy access to the A1(M).

In Cleveland the average house price has risen by 39pc in the past 12 months, from 84,000 to nearly £117,000.

The hot spots continue to be Linthorpe, Marton, Acklam, Coulby Newham and Nunthorpe, where demand for homes consistently outstrips the supply. Stockton is also experiencing a boom.