BLACKBURN and Burnley have bucked the trend of fast-rising house prices, with an average three per cent drop in the year.

Official figures from the Land Registry show homes inflation is growing rapidly nationwide.

But in Blackburn and Burnley, unpopular older terraces are dragging down prices.

Average house prices in Blackburn are now £51,031 compared to £53,087 last year -- a drop of four per cent.

In Burnley homes sell for an average of £41,520. Last year you could expect to pay £42,536. The figures represent a two per cent slump.

A spokesperson for the Blackburn branch of Bradford and Bingley Estate Agents in King William Street said properties in the town which sell for only £12,000 to £25,000 were lowering the Land Registry figure.

"We've been busier than this time last year and, with most properties selling between £50,000 and £80,000, the outlook is positive," he added.

"However, the region does have its fair share of properties at the lower end of the market."

At Holden and Kelly Estate Agents in Preston New Road, a spokesperson said outlying areas like Wilpshire and Langho and properties in the Ribble Valley were still booming, and in Blackburn the Feniscowles and Cherry Tree areas were popular. But older terrace houses had been hit by new building and some residents had been suffering negative equity for years.

"First-time buyers like new town houses with fitted kitchens and gardens. And they can get deals," a spokesman said.

Roy Cook, of Roy Cook and Co, of Sudell Cross, said properties under £30,000 with no front gardens were sticking, while modern semis in the £50,000--£70,000 range were selling well.

However, three-bedroom terraces in the Granville Road area, near Preston New Road, an area which is being redeveloped, were popular.

"But young people prefer flats and apartments these days," he added.

The average property price across the country was up around 10 per cent with some areas in the south rising by up to 20 per cent.

It's not all bad news, though. In Hyndburn, house prices have seen a six per cent increase.

Rossendale homes are now five percent higher than for the same period last year and in Pendle it's seven percent.

The largest increase came in the Ribble Valley, where average house prices are now 13 percent higher than last year.

Coun Ashley Whalley, Executive Member for Regeneration for Blackburn with Darwen Council, said: "We shouldn't read too much into this figure as a generalisation of our housing market."