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I'm Durham born and bred - I headed south when I was 18 seek seek my fortune (and I'm still looking) but return regularly to see friends and family.
I always say that if you have a decent income and a stable job then the NE is one of the best places in the country to live - the cost of living is relatively low (my brother's 4 bed house in near Consett cost less than my 2 bed down south), the natives are friendly and there is some fantastic countryside on your doorstep.
The problem with the area is that the breadth of job opportunities isn't as great as you would find elsewhere and it can be harder to fall out of one job straight into another.
As mentioned above, there are some towns and villages around Durham which look ridiculously cheap on paper but you have to investigate why - often there are poor transport links, limited local facilities and high unemployment.
Personally, I would look at basing myself where you were able to get to jobs in Sunderland, Newcastle and Durham reasonably easily.