Villagers fear the value of their homes could plummet if an asylum centre gets the go-ahead.

Sue Baxter has been told by a quantity surveyor that homes in Arncott, Piddington and Blackthorn, near Bicester, could lose as much as 20 per cent if the Government builds the proposed 750-person centre on former Ministery of Defence land, between Piddington and Arncott.

The figure was revealed as part of a study commissioned by Central News.

Mrs Baxter, of Hopcraft Close, Arncott, co-founder of Bicester Action Group, said: "It looks like 10 to 20 per cent -- that's a £10,000 to £20,000 loss for each house if it goes ahead."

She said the matter of compensation for householders had been raised with Bicester's MP Tony Baldry.

Mrs Baxter said: "The action group's stance is no matter what initiative, even if it's an outside initiative by the Government, then anyone who suffers should be compensated."

Some villagers who have been trying to sell their homes have faced problems.

Rita Chapman has had her four-bedroom house on the market since February and, although interest has been strong, it has not been sold.

She said: "We have been quite up front about it when people come, but people have shied away because of the threatened accommodation centre. Since the news broke, so many houses have gone on the market. Everyone is in competition with each other.

"I think there will be some loss in value."

Mrs Chapman's house was on the market when news of the proposed accommodation centre broke last year.

It is now on the market at the same price as last year, despite a valuation which states that it is worth £11,000 more.

However, the town's estate agents said sales of homes in the three villages were going well. Matthew Fleming, partner at Quadrant, said: "We have sold quite a few properties in Piddington and got good prices for them."