PROPERTY prices across the region continue to be affected by the US terrorist attacks and the foot-and-mouth crisis.

Reports show that despite a rise in house prices in recent months, there has been a general slowdown and fall in demand since September 11.

Since the attacks on New York and Washington DC, the number of people planning to move within 12 months fell from nine per cent to five per cent.

In the countryside, foot-and-mouth kept the supply of land down and pushed up prices.

The average price of farmland rose 15.8 per cent in the last year with less land available for sale because of Government restrictions.

Julian Sayers, of the Royal Institute of Chartered Surveyors, said: "Foot-and-mouth no longer dominates the headlines but its impact will be felt for a long time to come.

"However, more land is likely to reach the market from now as the effective freeze on transactions created by emergency restrictions ends."

Despite the slowdown in the region's house prices, there is still more demand than supply in certain areas, such as Gosforth, in Newcastle, and Whitley Bay, which has helped boost average prices.

According to The Northern Rock, in Durham, the average house price now stands at £64,350 which is less than the regional average but 7.9 per cent up on last year.

In Newcastle, the average house price is now £75,350.

North Yorkshire has recorded the highest house prices in the region with an average of £76,450 while Teesside has one of the lowest at just £58,400.

Northern Rock chief valuer Alistair Laws said: "It is anticipated we can look forward to gradual price increases as the year progresses."