Cost of property spirals

South Oxfordshire has the ninth highest prices/ earnings ratio outside London, while Oxford is 14th in the league table compiled by Barclays Private Clients, the wealth management arm of Barclays.

With the average house in Oxford costing £238,094 and the average income £25,452, the ratio between the two stands at 9.35.

The national average is about six.

The ratio in south Oxfordshire is 9.76, Vale of the White Horse 8.67, west Oxfordshire 8.4 and Cherwell 6.7.

Gordon Rankin, marketing director of Barclays Private Clients, said the area was heavily affected by London and the proliferation of hi-tech businesses in the area.

He added: "Places like Oxford, Windsor and Maidenhead are among the most desirable areas to live in the country.

"Their proximity to London, Heathrow and the good jobs in the region have pushed up house prices to be amongst the highest.

"Obviously, the difference between income and property prices is not everything in terms of affordability as many already have a lot of equity in property.

"However, the data does give real insight into those areas which are hot spots at the moment."

The most affordable property in the country is in Burnley, Lancashire, where the average income is £20,467 and average property prices are £34,860, giving it an index of 1.7.

Meanwhile, the Royal Institution of Chartered Surveyors has moved to allay fears of a crash in the housing market.

RICS South East regional director Irene Woodward said: "We believe that a slowdown in house price inflation is more likely, given a stable economic climate of low interest rates and low unemployment.

"Looking ahead to 2003, we expect to see house prices rise by no more than 11 per cent in the year, reducing to five per cent in 2004."

Nationwide Building Society said it expected house prices to rise by 10 per cent during 2003, well down on this year's leap of about 25 per cent.

But it added that parts of London could see prices fall.