DESPITE concerns at dark clouds gathering over the UK property market, housing experts reckon Oxford is immune to a slump.

Research by estate agents Knight Frank found Oxford the third best place to buy in Britain, pointing to good links to London, good schools and growing competition for homes.

Rachel Minder, 26, has just bought her first home in Barton, a two-bedroom semi-detached, costing £215,000, which she thinks it is a solid investment.

Miss Minder bought the house with her boyfriend Nathan, 29.

She said: "We kept hearing there was supposed to be this crash in the market and thought about putting it off.

"Then we were worried about paying too much - but everywhere is so expensive these days.

"In the end we decided to buy rather than rent as it's an investment for the future and at least this way we have something to show for our money."

Damian Gray, head of Knight Frank's Oxford office, said: "I think Oxford is really on the march at the moment, and with a lot of exciting developments happening it's a great place to invest.

"The regeneration of the Cowley Road has really improved the area, Jericho is now thriving and the plans for the redevelopment of the city centre are good.

"Oxford has really changed and become far more cosmopolitan with more on offer. All these things mean it is a pretty bomb proof place to buy as you have different markets competing for properties.

"If you are in a city that can only sell to itself then you may have problems, but there are a lot of people coming to Oxford to buy, particularly from London, which makes it so strong."

Mr Gray said, in the past year, 40 per cent of inquiries came from people looking to relocate from London.

He said: "These are people who know that Oxford is close enough to London to commute and that there are also excellent schools and hospitals in the area. And, whereas before the housing market in Oxford has been led by academia, the development of the Science Park and the influx of other companies means there is now a balance between academia and industry."

A survey by Nationwide found the average-priced house in Oxford costs £339,404, with the city ranked fourth of places with the biggest per cent rise after Belfast, Aberdeen and London.

Pressure on space will also continue as planners struggle to find new places to build.

Scott Fraser estate agents managing director David Blythman said: "Over the last ten years, prices in Oxford have gone up on average by ten per cent a year. I personally don't think it will rise that much this year - maybe more like four or five per cent - but it's still a very strong market to be in and contradicts reports of a drop in prices."

Oliver James estate agents director Oliver Hope added: "We also have the universities in Oxford, which is a huge draw for the buy-to-let market."