Oxford is the most desirable place in the UK to open a shop.

A new report has revealed that retailers see the city as being a prime location in which to do business and are queing to snap up available properties. And the top three most desirable areas are Cornmarket Street, Westgate and Queen Street.

The latest statistics show this booming demand is not a new trend - for the last seven years Oxford has topped the poll produced by market analysts Focus.

Robert Seares, partner with Oxford property agents Cluttons, said: "In some ways, this is surprising, and is not a result of the city having wonderful shops. It is a product of the lack of available supply and a desire to be where there are historic and cultural links, as well as being close to London."

But Graham Jones, spokesman for the High Street Business Association in Oxford, said that despite the obvious attractions of Oxford to retailers, there were still empty premises in the city centre due to high rents and higher parking charges.

He added: "Retailers coming in need to be sensible and agree the right rent levels. People are coming in prepared to pay higher rents and that puts pressure on others to put up their prices. There is a great risk that we will see a lot of independent shops closing down and they are what makes Oxford distinctive from other places."

Mr Seares said the redevelopment of the Westgate Centre would also act as a magnet for retailers.

Significantly, 75 per cent of the top ranked retailers are in Oxford city centre, including Boots, Marks & Spencer and Argos.

John Lewis, one of the few missing major players, is set to be the flagship tenant in the new Westgate Centre, planning to be trading by 2011.

Mr Seares said the future for retail was bright, despite growing competition from the Internet, with 60 per cent of inquiries about commercial property to Cluttons concerning the retail sector.