North Yorkshire's housing market is the strongest out of all ten areas reviewed in Northern Rock's latest house price survey over the three months to October.

The region was one of only two in the north-east and Cumbria to show an increase over the year in all house price categories.

An average quarterly price increase of 1.7 per cent pushed up the average house price in North Yorkshire to £61,450. Nine out of the ten house categories recorded a price increase over the quarter.

Two-bedroom flats indicated the highest quarterly climb of 3.8 per cent, making them the most expensive of their type at £40,900 in the region's ten surveyed areas.

The only exception was the price of three-bedroom detached houses with garage which slipped fractionally from £76,650 in July to £76,600 last month.

The Houseprice Survey is compiled by Northern Rock's research department from information provided by a panel of more than 200 estate agents and valuers throughout the north-east and Cumbria.

A valuer in Scarborough recorded that prices had gradually increased throughout the year, stating that "demand is apparent and buyers seem undeterred by mortgage rates".

In Hambleton a valuer noted that demand continues, particularly for older premises in village locations.

David McCarthy, Northern Rock's North Yorkshire sales manager, said: "In spite of recent economic turbulence in the region and continuing uncertainty in some sectors over job security, the northern housing market is holding firm.

"In annual terms we have recorded an increase across the board in all property types surveyed.

"The annual increase of 3.7 per cent is still above the rate of inflation, but the underlying message from our findings remains that, in the short to medium term, property is best considered for 'nesting not investing'.

"In the light of a predicted economic slowdown across the country and the possible prospect of further base rate cuts, we will be monitoring the housing situation very closely over the next three months."

The survey for North Yorkshire shows the price of new four-bedroom detached houses with garage rising to £105,250 in October (from £102,950 in July); three- bedroom detached with garage, £76,600 (£76,650); pre-war three-bedroom semis with garage, £66,300 (£64,350); post-war three-bedroom semis with garage, £60,950 (£60,550); pre-war three-bedroom terrace £52,750 (£52,200); post war three-bedroom terrace, £52,350 (£51,200); two-bedroom pre-war terrace £44,550 (£43,300); two- bedroom post war terrace, £46,850 (£46,800); two-bedroom semi bungalow with garage, £54,550 (£53,800); two-bedroom flat, £40,900 (£39,400).

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