Oxford is bucking the national trend, with property prices set to weather the downturn better than many other towns and cities.

Mark Charter, of Summertown-based Carter Jonas, said: “Oxford has always been resilient and we think that will be the case again in 2011.

“We can see a five per cent decline across the UK overall, but there are hot spots and Oxford is one.

“Two opposing forces come into play. On the one hand is demand for schools, the positive effect from the universities and hospitals and people moving out from London.

“Against this, is the impact of rising unemployment and pressure on the public sector. Taking this into account, there could be a standstill but we do not expect a fall in prices.”

Ronnie van der Ploeg, of Savills, said: “Oxford remains resilient because the schools are a real magnet, together with the business parks, colleges and hospitals. However turbulent the market in the UK, we expect a softer landing. And although we may not be bomb-proof, the right property in the right location, if sensibly priced, will sell. Of course, anything in central North Oxford goes almost immediately.”

On prices, Mr van der Ploeg added: “We would expect them to remain stable.”

In East Oxford, it is the buy-to-let sector that has kept the market buoyant, according to Stewart Caldwell-Smith of Connells.

He said: “We are lucky in the Iffley and Cowley Road area that we have a strong buy-to-let market, thanks to the hospitals and universities.

“We had a much better 2010 than many other towns because the buy-to-let element kept the bottom of the buying chains alive.

“Towards the middle of this year, we expect things to pick up but during the early part, when everyone puts their home up for sale, prices may be chipped down a bit from where they are now.

“We just sold a two-bedroom house on Hurst Street that had been refurbished, for £297,500 and a similar-style property in James Street, in need of total renovation, sold for £5,000 more at £302,500.

“East Oxford is attractive to investors for student lets, while families like it because it is a great place to live.

“It has also made Florence Park more desirable. Five years ago, that was not a popular area but now if we get a house there, it sells almost immediately.”

Agents say there is a shortage of what they describe as “mid-market family homes”.

David Blythman, of Scottfraser, said: “Around the hospitals in Headington, there is a real shortage of good quality family homes from £600,000 upwards.

“We are still getting sealed and multiple bids. We sold a house in Hill Top Road last month and there were buyers competing for that.”

Mr Charter, of Carter Jonas, agreed. He said: “There is a dearth of decent family homes in the £600,000-£1m price bracket. I could sell one after another if I had them.”