JUST four houses in the UK sold for less than £10,000 last year three of which were in Burnley.

But today civic leaders and property experts forecast a bright future for Burnley and said the prices were an extreme example of the borough's housing market.

Mike Woods, managing director of Burnley's Scott & Co estate agency, said £10,000 houses were now very rare and business was booming at the moment.

"Two years ago you could easily pick up a stone-built, two-bed terrace for ten grand. Prices have gone up an awful lot.

"Now you'd pay £30,000 for one that needed to be refurbished.

"If it was in good condition and in a good location you'd pay about £50 £60,000."

Details of where the £10,000 houses were have not been released by the Land Registry, which produces an annual report on property prices.

Burnley Council leader, Stuart Caddy, who was recently appointed a member of the North West Regional Housing Board which addresses the most important housing issues across the North West, admitted cheap houses were still a problem.

But he said the millions being pumped into housing stock through Elevate East Lancashire is tackling the problem.

Coun Caddy said: "Elevate is going to make real difference and in the Elevate areas (the Accrington Road area, Burnley Wood and Danehouse and Stoneyholme) the house prices are rising.

"There are still houses around in Danehouse and Burnley Wood costing that in areas where demolition is taking place.

"Whether they are being bought by people outside Burnley who do not know the area I don't know."

Property developer Barbara Goldsmith, who last year tipped property prices in Burnley and Padiham to go through the roof, said she was still predicting a bright future for Burnley.

Ms Goldsmith, 48, owner of London-based Stratford Properties, who yesterday found a three-bedroom terrace costing £67,000 for a buyer in Harold Street, said prices could triple in certain areas.

She added: "I think Burnley is a wonderful place and the £10,000 home is a very extreme example.

"You have to be selective where you buy but Burnley is very up and coming."