HOUSE prices in Oxfordshire have moved upward for the first time in almost two years, new figures have shown.

The average cost of a property in the county increased by 0.3 per cent during June – following a 0.2 per cent slide in May – according to the Land Registry, which published its figures yesterday.

The average home in the county now costs a little over £215,000.

The month-on-month rise in June was the first positive monthly change since November 2007.

Oxford estate agent Gavin West, of Kemp and Kemp, said the shift reflected a shortage of property for sale.

He said: “In Oxfordshire, we have a supply problem and that’s what’s driving the price rises, as in many rural areas and provincial towns in the UK.”

Mr West said he had sold his house as the market reached its peak in 2007 and had been renting ever since, but was now unable to find anything suitable to buy for himself. He added: “People are not putting their properties on the market unless they have to.

“People who have to move because of jobs or divorce, are few and far between, and so there’s a shortage.

“I think a lot of people like me have decided to dip their toe in the market, but there’s not a lot out there.”

William Kirtland, of estate agents John D Wood, which operates at the upper end of the market, said: “Buyers who want to get in for schools or jobs are bewildered that there is not much to see.

“They are having to pursue properties up to and beyond the guide price.

“We just had one sale, which has gone more than 10 per cent over its guide price.”

The Land Registry also reported a drop in the annual rate at which house prices are falling, which slowed to 12.2 per cent in June, from 13.5 per cent during May.

The average property in Oxfordshire was worth £214,446 in May.

The average figure for England and Wales is £153,046.

Oxfordshire prices rose faster than the national average increase, which was 0.1 per cent.

But the Oxfordshire rise was in line with the South East, where the figure climbed 0.3 per cent.

Buyers are beginning to return to the market, according to the Land Registry, which said the most up-to-date figures showed that during April the number of completed house sales in Oxfordshire rose to 474 from 418 the previous month.

But despite the improvement for the third month in a row, completions were still 23 per cent lower than in April last year.