A ONCE-neglected area of Burnley where houses used to sell for £1 has become a property hot-spot with prices set to soar, housing experts claimed today.

Prices in Burnley Wood are shooting up because of millions being pumped into housing stock through Elevate East Lancashire.

In recent years buyers could pick up a house in Burnley Wood for less than the average price of a new car with some selling for just £3,000.

And just last year three homes in Burnley were sold for less than £10,000.

Along with a terrace home in Salford, Greater Manchester, they were the cheapest houses bought in the country.

However those hoping of picking up a bargain today in the regeneration zones like Burnley Wood, Accrington Road and Daneshouse and Stoneyholme could be in for a shock with some properties coming with a price tag of more than £70,000.

Estate agents in Burnley say the average house price has risen to around £40,000 in that area.

It comes after millions of pounds was spent demolishing around 400 old crumbling houses in Burnley Wood.

A further £2.5million was provided by the goverment to allow those on low incomes to apply for grants of up to £5,000 to make home improvements, such as stone cleaning and re-pointing.

More plans are in the pipeline to build hundreds of new, modern homes with lots of green space.

And Lancashire letting agent Aspire Homelettings says it has a waiting list of people wanting to move into Burnley Wood as the area goes through a revival.

Paul Hutton, Aspire's property manager, who have over 400 properties in Burnley, said interest in properties in Burnley Wood was booming.

He added: "It's fair to say that Burnley Wood hasn't enjoyed the best of reputations in recent years, but all the signs are that is an up-and-coming area.

"We have renovated a number of properties in the area in recent months and on every occasion we have been staggered by the amount of interest that has been expressed.

"As soon as our signs go up that refurbishment work is being carried out, we are inundated with inquiries.

"On every occasion we have let the house without any problems and tenants have been able to move in straight away.

"In fact we now have a waiting list of people looking for properties in Burnley Wood.

"For many people, renting is the only option because of the rise in house values in recent years.

"We try to make high quality living affordable to everyone including people in the rental market.

"It is a formula which is working for Aspire and helping to regenerate a once-neglected area of Burnley.

"I think we have probably reversed a vicious circle because a few years ago people would have struggled to find high quality accommodation in Burnley Wood.

"But now we are attracting people who have pride in their homes and pride in where they live too."

Barbara Goldsmith, 48, owner of London-based Stratford Properties, has found properties in Burnley for 25 tenants in the past year, and has been tipping the borough as a property hotspot for several years.

She said a client wanted to buy a house in Harold Street for £62,000 but the price had risen to £70,000 in the three months it took him to sort out a delay in his mortgage application.

Ms Goldsmith added: "There is no doubt about it - the prices are going up under our noses.

"Because of the improvements that are planned and because it is quite accessible now Burnley is a good place to invest."

"Because prices are cheaper parts of Burnley are better to buy in than parts of Manchester."

Burnley Wood councillor Denis Otter said: "It's good news and things seem to be looking up for what was once a very depressed area.

"I remember when you could get a house for just £1 simply because people wanted to get rid of them, then prices rose to a few thousand.

"Although prices are still lower than many other places it seems that houses in Burnley Wood are now approaching prices more like their real value."

Brian Fenn, of the Burnley Wood Action Group, said: "The area has been neglected for a long time, but over the last couple of years people have been working very hard to try and make improvements.

"Surveys we do now in the area show most people would like to stay and that is a good sign.

"People are much more optimistic about the future and these house prices show that."