The average price of an Oxfordshire house in July rose to £245,357, a 10.1 per cent annual increase - according to new figures released by the Land Registry.

The rise compares with an average price for England and Wales as a whole of £181,460 - an 8.6 per cent annual rise.

The Land Registry figues are based on actual prices achieved in sales completed during the month. In Oxfordshire they show a monthly rise of 0.6 per cent compared with a national monthly rise of 0.1 per cent.

Nationally, London prices continued to rise fastest in July, showing a 10.5 annual increase.

But analysts in the capital reported in August that fluctuations on the Stock Market and the effects of five interest rate rises since last summer were beginning to slow the London market down, with some buyers fearing that fallout from the collapse of the US sub-prime market could affect prices here.

Partner at Oxford estate agents Cluttons, Harry StJohn said: "The Oxfordshire market is definitely closely connected with the London market. So if city bonuses and trading activity in the City were to fall, then Oxfordshire prices would definitely be affected.

"But it is a big if and its far too early to make any predictions."

He added: "The interest rate rises are at last beginning to bite and I think we might see a levelling off of prices."

Some parts of the UK have seen prices fall over the summer as interest rates rose according to research from the FT house price index.