ANNUAL house price inflation in Oxfordshire fell to two per cent in the first three months of the year, according to figures.

However, the number of homes changing hands in the county soared by almost half during the first three months of the year as the market showed signs of picking up.

In the first quarter of 2006 2,417 homes were sold, compared with 1,683 in the same period of 2005, according to the Land Registry. The average price in the county was £257,528, compared to £253,432 in the same period last year.

Detached homes in Oxfordshire saw the smallest rise 0.4 per cent while semis rose five per cent and flats by 10.5 per cent.

Nationally, 218,770 properties were sold up to the end of March, 37.5 per cent more than 2005, according to the Land Registry.