The recent falls in housing prices have hit owners of buy-to-let properties hardest, according to experts.

A top 10 list of places suffering the largest price drops is dominated by regeneration sites in northern city centres, which have proved popular with buy-to-let investors.

Such properties, often in new developments on old brownfield or industrial sites alongside canals or rivers, have lost thousands of pounds in value.

The research, compiled by property website Mouseprice.com, revealed that the worst price fall was for properties around Birmingham Canal, close to the city's centre and home to many young professionals. Prices fell by 17.3% over a 12-month period - an average drop of £32,000.

Buyers of flats in canal-side developments built as recently as 2003 have already crystallised their losses by selling at less than the price they originally paid, researchers said.

Properties on Manchester's fashionable Deansgate suffered a similar price slump of 17.1%, while Erebus Drive in Thamesmead was the worst-affected area in London, with a drop of 16.9%.

Selwyn Lim, director of Mouseprice.com, said: "These areas attracted the most buy-to-let investors during the boom and have recently suffered due to supply outstripping demand.

"Interestingly, the greatest price falls are not connected with how expensive the relative locations are," said Mr Lim.

"Price falls have not discriminated according to how much a property cost in the first place or how desirable an area was."

The ten areas where average values have fallen the most over the past year are:

:: Birmingham Canal, Birmingham, 17.3%, from £185,500 to £153,500.

:: Deansgate, Manchester, 17.1%, £237,000 to £196,500.

:: Erebus Drive, Thamesmead, south east London, 16.9%, £251,000 to £208,500.

:: Elmwood Lane, Leeds, 16.3%, £178,000 to £149,000.

:: Millsands, Sheffield, 15.1%, £142,000 to £120,500.

:: Lakenham, Norwich, 14.8%, £165,000 to £140,500.

:: Abbey Road, Barking, east London, 14.7%, £194,500 to £166,000.

:: Dame Dorothy Street, Sunderland, 13.7%, £153,000 to £132,000.

:: Russell Rd, Barnet, north London, 12.8%, £305,000 to £266,000.

:: Walton Hall Avenue, Liverpool, 12.6%, £99,500 to £87,000.

Mouseprice.com said the average values related to the postcode sector rather than the specific street or locality named.

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