House prices in Oxfordshire continued to fall during the last three months of 2003 compared with the previous quarter, according to new figures.

The Land Registry statistics show the average price of a house sold between October and December was £229,675 compared with £234,468 in July-September -- a drop of two per cent.

The overall rate at which houses have risen in value compared to the last quarter of 2002, when the average Oxfordshire house price was £212,167, has also dropped to 8.2 per cent compared to 8.3 per cent in July-September.

A partner at Oxford city centre estate agent Cluttons, Harry St John, said: "The slowdown in the rate of increase has definitely been in line with our expectations.

"However we have noticed that prices at the upper end of the market are now beginning to perk up again, perhaps as a ripple effect from London where they are picking up.

"Maybe the marginal slowdown is due to the rise in interest rate at the end of last year. People are borrowing large sums and a small rise can represent a lot of money.

"But we have not yet seen the beginning of the spring market and mortgage payments remain affordable for most people."

Huw Warren of rural estate agents Smith Woolley said: "I would agree that the rate of increase has definitely slowed from the excessive rises we saw a couple of years ago, but I think most of us are pleased to see that.

"But we have definitely not seen a drop. December was one of our best yet, particularly with houses at the upper end being bought up by people from London."

Owners of detatched houses in Oxfordshire fared slightly better than owners of semis. They saw average prices rise to £342,159 compared to the final quarter of 2002 while owners of semis saw prices rise to £199,792 compared with £185,925.

Figures released by the Office of the Deputy Prime Minister today (February 9)showed that the average price of a property in the UK during December had risen to £162,689, two per cent higher than the previous month. At the same time it said annual house price inflation had slowed from 9.7per cent in the 12 months to the end of November to 8.3 per cent.