A BOOM in second home ownership is spreading to towns across the North-East, raising fears that first-time buyers will be priced out of the market.

In North Yorkshire, where the number of first-time buyers is already in serious decline, the problemis increasing.

The number of absentee homeowners has more then doubled in five towns in the region in only two years, according to Government figures.

The biggest rise was in Sedgefield, which has 44 second homes this financial year compared to only six in 2003/4 - an increase of 633 per cent.

But there were also huge leaps in Stockton (338 per cent), Sunderland (169 per cent), Hartlepool (153 per cent) and Darlington (103 per cent)

In North Yorkshire, the biggest increases have been in Hambleton (249 per cent) and Richmondshire (267 per cent).

Now the Government has accepted "the concerns that are felt about the impact of second home ownership on the affordability and availability of homes for local people".

But new planning laws, under consideration by an independent commission, are likely to concentrate on introducing curbs in rural areas only.

In the Hambleton district of North Yorkshire - where the average house price last year was £218,000, the proportion of first-time buyers was just 12 per cent.

The Yorkshire Dales National Park Authority has already endorsed a radical scheme reserving new housing for local people. However, some fear that the shortage of land for building means it may only have limited benefits.

The statistics, released by the Office of the Deputy Prime Minister, revealed a 30 per cent increase in second home ownership nationwide over the past two years.

Housing Minister Yvette Cooper said that the case for Government intervention on second homes, through planning control or otherwise would be considered.

However, the review will be carried out by a new Affordable Rural Housing Commission launched two weeks ago, suggesting it will focus on rural areas only.

New planning laws could prevent the sale of country homes to wealthy town-dwellers, while those already owning rural retreats may be hit with higher council tax bills.

Sarah Teather, the Lib Dem local government spokeswoman, said: "There are already record numbers of second homes, with young people priced out of the market in property hotspots."

Christopher Dean, of the Council of mortgage Lenders, said: "People buy second properties because mortgages are so affordable at the present, and a very good investment."