HOUSE prices in Burnley have fallen by up to 25 per cent following the recent race riots, it has been claimed.

Angry residents in the Daneshouse, Duke Bar and Burnley Wood have contacted their local councillors, claiming that estate agents and building societies have slashed the value of their homes.

During the riots, the Duke of York pub, Duke Bar, was firebombed, many cars were burnt out and businesses and shops had their windows smashed.

The scenes of violence were shown on national television and witnessed by people across the country.

A spokesman for Halifax Bank said: "It is possible that there are certain areas at the moment, whether it is in Burnley, Oldham or Bradford have been experiencing problems.

"House prices can be affected by events like these, but it can be short term.

"The best advice that we could give to people who are looking to move, but can't because the value of their home has fallen, is to get in touch with their lender."

Councillor Peter Kenyon, who represents Queensgate ward, said: "There is evidence to suggest that some estate agents and building societies have been marking down house prices by up to 25 per cent in areas which were affected by the disturbances at the end of June.

"It is understandable that they would react like that instantly, but after careful consideration it should be dismissed."

Peter Kenyon does not believe that the riots have any bearing on low house prices in the town, "The 3,500 empty houses are the primary cause of depressed house prices in Burnley and the council are using their limited resources to deal with these properties."

"They are engaged in a self fulfilling prophecy which will damage the interests of residents living in those areas, and in the long run their own interests.

"We have got a 16 strong task force to examine the cause of the disturbances which will report in October as to what we should do to prevent any recurrence.

"If after the conclusion of that report in October, the disturbances are identified as the root cause of a fall in house prices, then it would be justified.

"I have seen what claims to be a valuers report for a property in Duke Bar. It said that the property was undesirable, because it was in a former mining area.

"The Bank Hole Colliery has been gone for 20 years and the former site is now a park, that is totally unjustified."

Rafique Malik, a councillor for the Danehouse ward, shared Mr Kenyon's sentiments: "I totally agree with Peter about this.

"House prices are already depressed, and it does not have much to do with the race riots."

At a meeting of Burnley Council's ratification committee last night Lib/Dem councillor Gordon Birtwistle thanked Coun Kenyon for highlighting the issue.

He said: "For a valuer who knows little about Burnley to walk around the area and value property and then to knock it down by 25-30 per cent because of a little disturbance blown out of all proportion by the Press is scandalous.

"We don't need things like that when we want our town to be uplifted.

"The valuers probably travelled in from out of town, the coast or the Ribble Valley.

"Eight weeks ago, a house was £24,000, now it is worth £16,000, it is scandalous.

" I hope it will be re-assessed."

Vice-chairman Coun Andrew Tatchell agreed it was not helpful if people came in from outside, took a snap-shot of the town and devalued property.