Traders in Oxford's Little Clarendon Street are warning that they are under threat from high rent rises and a drop in trade.

Shop owners have criticised Oxford University, which owns several retail premises, for increasing rents while they struggle with dwindling customer numbers.

The university denied it was trying to push traders out and said it had commissioned a study into ways of developing and improving the retail scene in the street.

A downturn in trade during the past two years has been blamed on parking and access problems in the city, while rents have increased by up to 30 per cent.

Although there are several free short stay parking places they are often empty, according to traders.

Mo Fini, the owner of Tumi, which has sold fairly-traded Latin American art and furniture in the street for 18 years, said it could be closing within months because he could no longer afford the high rent.

Sean Walker, part-owner of Inspires Art Gallery, said visitor numbers had dropped significantly during the past two years.

He said: "Little Clarendon Street is now Oxford's neglected and forgotten street."

A planning application by Oxford University to change the use of a former sports shop into offices has been approved by Oxford City Council, despite strong objections from traders.

Central furniture store owner Geoff Taylor, who has traded in Little Clarendon Street for 20 years, complained that another university-owned retail outlet, on the corner of Walton Street, had lain empty for five years.

An Oxford University spokesman said rents in the street were set at the market rate.

She said: "A shop in Little Clarendon Street, owned by the university,which was on lease, is going to become the premises for the university's Admissions Information Centre.

"The Admissions Information Centre is currently on St Giles. It provides a central one-stop-shop for prospective applicants to find out everything they want to know about Oxford University. It is regarded by the university as important to its drive to broaden access.

She added: "The university and colleges value Little Clarendon Street as a thriving retail street and wish to maintain it as such."

Susanna Pressel, the vice chairman of the city council's environment scrutiny committee and the councillor for Jericho, said: "Walton Street used to be scruffy but is going up in the world, I think the same will happen for Little Clarendon Street.

"But market forces do determine the rents and there's not much the city council can do about that."