The rate at which house prices are falling in Oxfordshire has accelerated, official figures have revealed.

The latest statistics from the Land Registry show prices tumbled by 1.5 per cent in August, up from 0.3 per cent recorded in July, which was the first year-on-year drop since figures began in 2000.

It means houses in the county now cost an average of £244,090, knocking £3,800 off the value of an average property in a year.

The number of transactions has also fallen as buyers shy away from an uncertain market being hit by turmoil on the world's financial markets.

Patrick Murray, a negotiator at Paul Murray Town and Country Property, in Summertown, Oxford, said: "Sales were not too bad in the first couple of weeks of September but the financial chaos has made people a lot more worried.

"We are still selling properties at the top end of the market, particularly in the city, but property in the country is more of a problem."

Mr Murray added that a house in Kidlington sold recently for £455,000 after originally being advertised for £595,000.

William Kirtland, manager of John D Wood, also in Summertown, said some properties had fallen by more than the average figure suggested and added that the problem was particularly acute in the villages.

He said: "There are more properties available in the villages and buyers can pick and choose.

"In the city supply is limited but a lot of people are deciding not to put their properties on the market if they don't need to sell."

Nationally, prices fell 4.6 per cent to £174,493 and the South East average was down 4.8 per cent to £216,701.