House prices in England's North East may rise by as much as 10% this year, a property expert has said.

Ajay Jagota, of sales and lettings firm KIS, believes that reforms of pensions and stamp duty will bring a wealth of new buyers to the market, pushing prices up across the region.

Pension changes announced in last year’s Budget and due to come into effect this April will allow savers over 55 greater freedom to take their pensions as a lump sum, with so-called 'silver landlords' likely to take advantage of the return on their investment offered by buy-to-let properties by buying homes to rent out.

Meanwhile, George Osborne's changes to stamp duty, announced in December’s Autumn Statement, now mean that homebuyers purchasing properties worth less than £937,000 will pay less of the tax – cutting on average £1,000 from the cost of buying a North East home.

Low inflation and expected delays in lifting interest rates have also led to suggestions of a 'mortgage price war' as several major lenders launch New Year 'record low' fixed-rate deals.

However, mortgage approvals hit a 17-month low this week – and are 23% down on this time last year.

Mr Jagota said: “The relaxation of pension regulations will undoubtedly bring more purchasers to the market both as owner-occupiers and buy-to-let investors, pushing up prices. At the same time, stamp duty changes will make it cheaper and easier to buy a home.

“The North East rental yields are as good as any in the UK and as rental returns rather than capital appreciation are key to making money out of property, out region stands to gain the most. As a result I think we can expect to see double digit house prices growth in the North East – 10% seems a good bet – with rents set to rise in the region of 6%.

“All the correct conditions exist in the North East - low prices, high rental yields, strong demand, affordability of mortgages – mean that if buyers and investors decide 2015 is a time to buy then the self-fulfilling prophecy could raise prices just like they did in London.

“As a result, bargain hunters need to strike early to get the best deals, and should stick clear of signing lengthy tenancy agreements if they’re renting at moment and are looking to purchase."

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