THE North-South divide in house prices is narrowing, as the value of homes in the North-East continues to soar.

According to figures from the Office of the Deputy Prime Minister, the price of a home in the North-East has risen by 26.8 per cent in the past year, compared to 5.7 per cent in London and 4.4 per cent in both the South-East and South-West.

But there is still a dramatic difference in the cost of houses, with the average selling prices of a home in London of £243,231, compared to £107,449 in the region.

The North is gradually narrowing the gap on the South, with all Northern regions experiencing growth in the past year.

Yorkshire and Humberside experienced growth in prices of 18.7 per cent, while the North-West saw prices grow by 19.6 per cent.

England was the only part of the UK to see annual growth actually fall, from 8.8 per cent to 8.7 per cent.

Growth in Scotland rose 2.9 per cent to 26.2 per cent, Wales saw average rises of 21.7 per cent, from 19.3 per cent, and Northern Ireland recorded growth of 6.5 per cent, up from 6.1 per cent previously.

Figures from the Halifax this week showed that house prices rose by 2.2 per cent in February, taking house price inflation for the year to date to 6.2 per cent.

Barry Davis, chairman of property investment group, Blandford Estates, in Newcastle, said: "People keep talking about a boom in property prices in this region, when what it really amounts to is an adjustment. The low price of properties in this region was simply not sustainable."

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