THE price of terrace houses in Blackburn and Darwen has fallen by five per cent over the past 12 months -- bucking the national trend which has seen a 10 per cent rise in property prices.

And, according to a leading Blackburn estate agent, the slump is set to continue with town centre homes becoming increasingly difficult to sell.

James Whitehead, who runs his own business from Richmond Terrace, pinned part of the blame on absentee landlords who fill their properties with tenants on housing benefits.

"There is a cycle of deprivation that I cannot see any way of breaking," said Mr Whitehead. "No one wants to move to a heavily-rented area because of a perception of anti-social behaviour.

"When you have three or four rented houses in a street, other people try to sell and this drives down the prices. This is a major social problem that needs to be tackled.

"Terrace houses are getting more and more difficult to sell. Couples starting a home now want a property with parking and some green grass at the front and the back.

"In inner borough areas, the traditional two-up, two-down houses are now only appealing to the absentee landlords."

Figures released today by the Government's Land Registry showed that the average price of a terrace house sold in Blackburn and Darwen between October and December had fallen to £30,604, compared to the Lancashire figure of £38,707.

Only Blaenau, Gwent, Hartlepool, Merthyr Tydfil, Middlesborough and Rhondda were cheaper.

Nationally, the average price for a house in England and Wales was £106, 452. The average for Blackburn and Darwen stands at just £48,360.

There was brighter news for owners of detached houses in Blackburn and Darwen, with average prices breaking through the £100,000 for the first time. The cost of the average semi-detached dipped slightly to £53,174.

For the rest of Lancashire, the average detached home went for £118,078, a rise of more than £10,000 and the semi-detached fetched £62,831, up from £59,109.