EAST Lancashire homeowners continued to see huge house price rises in 2004 - but the area remains one of the cheapest in the country to live.

However, experts predict that the New Year will finally bring some stability to the area's booming house market.

Last year's huge rises were revealed by the annual survey in Halifax bank's house price index, taken from the mortgages it issues.

Nelson was the cheapest in England and the third cheapest in the UK, despite a 7.8 per cent increase, pushing up property prices from £72,856 to £78,565.

Harris and Moss Nelson branch manager Jean Holt claimed house prices in the town had shot up 30 per cent in the last six months.

And first time buyers were rushing to get a foot on the ladder before they were priced out of the market, she added.

Jean said: "I'm surprised Nelson is the cheapest.

"A terraced house 12 months ago would probably have gone for £17,000 or £19,000, now we're achieving £30,000 on them. The more expensive ones are £150,000 to £180,000 but they are slowing down a little bit.

"I would think the average price is £80,000 for a good terrace in a good area.

"First time buyers now want to get on the ladder just to be there. Where they would have rented 12 months ago they are now buying because they don't know where the market's going."

Darwen was ranked 13th in the country for house price increases by the Halifax, with a whopping 41 per cent rise in 2004 taking the average value from £70,512 to £99,357.

But the town was still only the 578th most expensive out of the 613 UK towns surveyed.

Blackburn had a 25.9 per cent rise, pushing the average house to £109,742 from £87,176.

But the town was only ranked 545th most expensive in the country, despite breaking the £100,000 barrier for the first time.

Just below was Todmorden at 547th, the average house price rising from £94,401 to 109,549 after a 16.1 per cent increase last year.

Accrington came in at 592nd, with a 34.7 per cent rise taking prices from £70,059 to £94,393.

Rossendale was the most expensive East Lancashire borough listed with a £130,155 house price rise following a 15.8 per cent rise from £112,367.

Burnley was ranked 582nd most expensive after a rise of 24.6 per cent from £78,850 to £98,219.

The Ribble Valley was not listed in the Halifax survey.

In the survey, the average house price in the North was £106,789, compared to £198,821 in the South.

The most expensive place to live was Gerrards-Cross in Buckinghamshire, with an average of £627,660.

Lochgelly in Fife, Scotland, was the cheapest, with houses costing £60,885.

Jane Pridgeon, chairman of Halifax estate agents, said: "For the second year running, the 20 towns recording the biggest house price increases were all located outside the south of England.

"But some things never change - the same towns in the south of England are in an exclusive club of their own because they are the most expensive places to own a home in the UK."

Alex Bannister, group economist for the Nationwide, which has also analysed last year's prices, said homeowners could expect the property market to stabilise in 2005 after a reduction of 0.2 per cent in December.