Penrith appears to be bucking the market trend as property prices continue to rise during 2008, it has been claimed.

The Penrith News & Star reports that figures from Email4property.co.uk show the average house price in the town has climbed by £21,000 since the start of the year to reach £188,145.

Managing director of the website David Bexon said: "Penrith is a highly sought-after destination for home buyers, both local and those lured by its stunning surroundings."

He added that the area has not been overdeveloped and despite a 150 per cent rise in value since 2000, prices in the area remain competitive.

But, local estate agents have told the news provider that if sellers are not more realistic and do not drop their prices Penrith could suffer the same downturn as elsewhere in the country, the paper states.

According to the Land Registry house prices in England and Wales have dropped by eight per cent in the past year.

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