House prices in the north-east of England have reached their highest level ever, according to new research.

A report issued by the North East Regional Information Partnership (NERIP) in conjunction with the Northern Housing Consortium and the Housing Corporation revealed the average cost of a property in the region had reached £119,000 in 2006.

Jon Carling, head of NERIP, said: "It''s clear that growth rates in prices continue to match those for England even though they did slow slightly in 2006, while affordability for first-time buyers and demand issues are still core themes of the report."

For buyers looking for a bargain, former prime minister Tony Blair''s old constituency of Sedgefield was the cheapest area to buy in, with the average property going for £86,000, while Tynedale was found to be the most expensive area with buy in, with houses valued at an average of £181,000.

In recent years, the north-east has played host to huge regeneration projects, with officials in the region this month announcing two new initiatives in Blyth and Seaham.