PROPERTY prices across the region continue to be effected by the US terror attacks and the foot-and-mouth crisis.
Reports show that despite a rise in house prices in recent months, there has been a general slow down 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 comes to an end."
Despite the slow down 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 the average price last year.
In Newcastle, the average house price is now £75,350, exactly £10,000 above the average.
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 that we can look forward to further gradual price increases as the year progresses."
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