PROPERTY owners in Swindon have to accept lower prices if they want to sell, estate agents have warned.

Pipers Way-based Nationwide has recorded the biggest monthly fall in house prices since 1991 in May at 2.5 per cent.

Estate agents say homes in Swindon are selling at prices £5,000 to £10,000 lower than they were earlier in the year.

Allen & Harris manager Steve Hudson said: "This month we saw 20 people agreeing to reduce their house prices in order to create more activity and get moved.

"Some people are also looking to sell and then rent while waiting to buy later to pick up a bargain."

He has seen a drop of around £7,000 from houses priced at the Swindon average of £149,000.

Castles estate agents director Jeremy Morcumb said that now is a good opportunity to move from a terrace to a semi-detached or detached home.

"For those who want to upgrade the gap has got closer," he said.

He said that buyers know they can pay less and are adjusting their offers accordingly.

"We are still selling properties but the price is the key factor. If you get the price right you can sell. People are offering about £5,000 to £10,000 below asking price.

"The market presents a lot of challenges but we intend to roll our sleeves up and intend to make hay in difficult times and make a difference."

May's slump is the seventh consecutive month of house price drops - the longest decline since 1992.

Simon Millin, an assistant branch manager at Andrews estate agents, said: "I thought April was even worse than May.

"I have seen a 2.5 per cent to three per cent decrease every month since the end of last year."

And many first-time buyers are not able to make the most of the slump, as mortgages are difficult to obtain, said Mr Millin.

"Lenders are not giving to first-time buyers," he said. "But if people are buying on as well it is not as big an issue."

Throughout the country the typical house lost almost £5,000 in value.

The current average house price of £173,583 leaves prices 4.4 per cent lower than a year ago, according to Nationwide.

Fionnuala Earley, Nationwide's chief economist, said: "The pace of house price falls accelerated in May as more weak economic news added to the gathering momentum of negative sentiment about the housing market."

But house prices are still five per cent higher than two years ago and 10 per cent higher than in May 2005.