The 130-acre site for sale includes a private beach

The 130-acre site near Beadnell Bay was put on the market by Lord James Percy, the Duke of Northumberland's younger brother, to fund his grouse shooting estate at Linhope in the Cheviots.

The sale includes a former watermill with planning permission for conversion into a house, farmland, woodland and a private beach.

The land at Tughall Mill has been in the Percy family for about 700 years.

Philip Gregory, spokesman for Northumberland Estates, said the site was being sold off to provide money for the diversification of the Linhope estate.

'Escape rat-race'

"With falling farm incomes, they have had to look at ways of financing the uplands estate", he said.

"The funds from the sale will go towards upkeep of the roads, repairing houses and roofs, maintaining the landscape, planting trees and establishing more heather for the grouse to come back."

Northumberland Estates manages over 160 tenanted farms, 7,000 acres of woodland, a large number of houses and cottage property in 13 villages.

James Denne, from estate agent Knight Frank said there had been a lot of interest in the property, mainly from individuals.

"They see it as being able to get out of the rat-race up here in the North East", he said.

A buyer has made an offer for the estate, which is still being negotiated.

Mr Denne refused to speculate as to who the buyer might be.