House prices in the North are rising faster than anywhere else in the country, with figures showing an increase of 11% in the last year alone.

New figures show an average home in the region is now worth £137,861, up from £124,055 last year.

The rate of increase is almost double the rise seen in the South-East, and well over the 5% increase seen in the South-West.

Last night estate agents described the North's rise as "astonishing", and said the market had returned to the "boom" seen around two years ago.

But unions representing key workers such as firefighters and health staff warned their members face being priced out of many sought-after areas.

The figures, released by the Land Registry, show average prices in Alnwick and Tynedale have now joined Castle Morpeth in topping £200,000. Lynn Dobson, of Dobson's Estate Agents, said: "The market has absolutely taken off since we came back after the Christmas break, in January. We have seen a lot of buying, and things are looking very healthy at the moment."

The figures, which compare quarterly sales prices from April to June this year with the same quarter last year, show increases across the region.

Berwick-upon-Tweed has seen as increase of 32%, while the nearby Blyth Valley area has seen an increase of almost 18%, and Tynedale 13%.

The region's most expensive borough, Castle Morpeth, saw an increase of around 4%. Newcastle has seen an increase of 9%, while Gateshead has seen prices rise by 10%. Dan Lockhart, of estate agent Sarah Mains Residential, said in some areas the market had returned to the sealed bidding process seen two years ago.

He said: "The market had fallen fairly static, but I think the confidence is back.

"Tyneside flats in Jesmond, for example, have risen from around £145,000 to £160,000 or £165,000 in the last three months alone. It's been a big rise.

"I also think the market is going to remain fairly healthy. We are likely to continue to see dramatic rises. It has left first-time buyers struggling."

But Alan McLean, FBU executive member for the North-East, said his members are now struggling to find affordable homes in many areas. "Some of our members have found it incredibly difficult to afford homes," he said.

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The Ripple effect

House prices in Berwick-upon-Tweed have soared by 32.7% in the last 12 months - but last night civic leaders said the rise could leave many people struggling.

The increase, from an average house price of £126,327 to £167,654, was put down to the so-called `Edinburgh Ripple', as properties are snapped up by commuters.

Berwick has direct rail and road links with the Scottish capital.

But Berwick-upon-Tweed Council leader John Stephenson said the rise is "not necessarily a good thing" and could leave first-time buyers and key workers frustrated.

Recent research showed the borough has the region's lowest average wage, at £288 per week.

Coun Stephenson said: "Berwick is one of the nicest places to live in the country, but there are concerns about younger people and the availability of affordable housing."