THE North-East will be stuck in a housing bubble unless the next Government helps ignite a construction boom, it has been claimed.

Colin Fyfe, Darlington Building Society’s chief executive, says more homes must be built to give buyers a greater foothold on the property ladder.

Mr Fyfe praised ministerial schemes, such as the Help to Buy ISA, but warned further changes must be made after the General Election.

His call came as housebuilder Bellway revealed it will bring 96 properties to Guisborough, east Cleveland, and Labour leader Ed Miliband drives forward a pledge to scrap stamp duty for all first-time buyers, which he says could save people up to £5,000 on homes worth up to £300,000.

The coalition Government also previously outlined its Help to Buy ISA, which it said will be available through banks and building societies to give new homeowners a bonus payment on amounts saved.

But, speaking to The Northern Echo, Mr Fyfe called for more action.

He said: “This building society was founded in 1856 to help people save money and improve their lives by being able to live in the property that best suits their needs.

“But housing is a challenge and there is a need for more to be built.

“At the moment, demand cannot be met for the whole range of houses.

“Some of the things we have seen have been good, such as the Help to Buy ISA.

“But if we do not see some improvements, and we still have people who are continually looking for a property, we are going to have a housing bubble.”

Mr Fyfe was talking after the building society’s annual general meeting, where it announced a profit of £1.16m for the year to December 31.

He also confirmed the mutual, which has ten regional branches, had now expanded into Middlesbrough to extend its reach across the region.

He added: “There is a special spirit about this building society; 2014 was an important year, but now is the time for a new chapter.

“We can move from the survival mode of the financial crisis to a thriving mode.

“We have moved into the heart of Middlesbrough, which is a real statement about the importance of the town for the society.”

Mr Fyfe, who took on his role from David Dodd after spending almost three decades with Clydesdale Bank, also revealed it will move online to help the next generation of savers.

It is adding mobile mortgage and saving services to its traditional over the counter offerings, with customers potentially able to apply for mortgages digitally by the end of the year, and saving accounts in 2016.

To complement the changes, it is looking at fitting machines in branches to count cash from youngsters’ piggybanks to help them understand the value of saving, but said it will not be leaving the high street or changing its red passbooks.

Bellway said work on its development, known as Pine Walk, will start imminently, offering two, three and four-bedroom homes.