Burnley house prices dropped more than North West average in May

But the drop does not reverse the longer-term trend, which has seen property prices in the area grow by 12.1% over the last year.

The average Burnley house price in May was £111,577, Land Registry figures show – a 3.4% decrease on April.

Over the month, the picture was different to that across the North West, where prices decreased 0.2%, and Burnley was lower than the 1.2% rise for the UK as a whole.

Over the last year, the average sale price of property in Burnley rose by £12,000 – putting the area 16th among the North West’s 39 local authorities with price data for annual growth.

The highest annual growth in the region was in Knowsley, where property prices increased on average by 20.5%, to £177,000. At the other end of the scale, properties in Allerdale remained level at £169,000.

An imbalance between supply and demand for properties has remained the primary reason behind climbing house prices across the UK throughout the pandemic.

But activity is starting to slow, with soaring inflation putting household budgets under pressure.

Sarah Coles, senior personal finance analyst at financial advice company Hargreaves Lansdown, said: “The average house price hit another record high in May, and rose faster than any time since the peak in June last year.

"However, we’re starting to see small changes in the market, which are likely to mean weaker growth in the coming months, especially if interest rates are hiked in August."

First steps on the property ladder

First-time buyers in Burnley spent an average of £101,000 on their property – £11,000 more than a year ago, and £30,000 more than in May 2017.

By comparison, former owner-occupiers paid £125,000 on average in May – 23.5% more than first-time buyers.

Property types

Owners of detached houses saw the biggest fall in property prices Burnley in May – they dropped 4.1% in price, to £214,360 on average. But over the last year, prices rose by 14.2%.

Among other types of property:

Semi-detached: down 3.6% monthly; up 12.1% annually; £136,600 average

Terraced: down 3.1% monthly; up 11.7% annually; £94,415 average

Flats: down 3.7% monthly; up 7.7% annually; £71,469 average