Spotlight on Accrington

WHERE: 18 miles north of Manchester, junction 7 off the M65.

WHY: According to the Halifax Building Society, house prices in Accrington rose by 54 per cent last year - the third highest increase anywhere in the country. The vast stock of terrace housing is the attraction and a two-up, two-down that cost £32,000 12 months ago is now valued at £45,000. The town ticks all the boxes investors look for, including good motorway links and public transport. The big developers have already spotted the potential with a new Barratt estate on the site of an old cable factory, and two big schemes from Elite Homes due next year which will include Accrington's first `loft' apartments, as well as top end four-bed houses. Prices for the one-bed apartments will be £85,995; £110,000 for two-beds and around £216,000 for the four-bed houses. The town centre does not seem to have kept up with this private investment with many of the shops run-down and empty. But the landmark Karrimor building is being redeveloped with new shops on the ground floor and offices above.

WHO: It may have gone off the scale but prices here are still relatively affordable so first-timers can get on the ladder if they manage to beat the investors. Families priced out of the nearby Ribble Valley are looking to some of the leafier areas around the town. The large Victorian houses and character cottages off Manchester Road by Haworth Park offer excellent value for money.

TRANSPORT: Nearby M65 and M66 motorways can whisk you to Manchester or Preston in under 30 minutes, while the railway station is on the line from Nelson and Colne to Preston.

SCHOOLS: St Christopher's CE High School gets 67 per cent of pupils through five or more GCSEs A-C and Hollins Technical College 40 per cent.

AGENT: Mike Ramsbottom, from Mortimers, said: "The level of interest and the volume of sales over the last 12 to 18 months has been phenomenal. A lot of it has come from investors, not just in the north west but from across the country who were interested in the cheaper terrace property to rent out. Houses that were selling for the low £30,000s are going for £45,000 now, which is a big increase from a low starting base. Excellent communications have helped. I have just sold a house at Clayton-le-Moors to a chap who works in Leeds. Personally, I do not think these levels of increase are sustainable - there is a limit to what people are prepared to pay. Quite a few investors bought on a new Barratt estate close to the town centre, two are now up for re-sale and a couple have To Let signs. The new schemes will bring a mix of housing that is needed, including the first apartments so it will be interesting to see what happens."

RESIDENT: Hilda Isherwood, 84, said: "I couldn't believe it when they said house prices had gone up so much. I can't think why, there's nothing to brag about here. The town centre and the market is a shambles. It is all very well house prices going sky-high if you own one or get left one but it is not that good for the young ones who can't afford to buy anywhere. The town has changed a lot over the years, a lot of new people coming in, and it is not the same."