A £1.8m starter homes scheme to help nursing staff on to the housing ladder is under threat from Oxfordshire's high property prices, according to estate agents.

The initiative allows nurses, social workers and other health workers to buy homes on a shared-ownership basis with a housing association.

The maximum price of a home to be considered for the scheme is £120,000 and there are fears that few properties are available within the price range.

NHS managers insist the scheme has been a success, but have already increased the price ceiling from £95,000 to give their staff "more flexibility".

Even with the higher limit, estate agents said it would be difficult for workers to find a place to live.

Peter Long, head of residential properties for Smith and Woolley in Summertown, Oxford, said: "One-bedroom apartments are going to be in excess of £120,000 in reasonable areas. The principle of the shared-ownership scheme is great, but it's just not going to achieve much. "Even if you look in ex-local authority areas where properties are at a discount price, the houses are likely to be more than £120,000 and many of the flats aren't mortgageable, because lenders consider them to be a risk.

"If you move to a market town it may be possible to buy, but I think estate agents in Abingdon, Kidlington, Bicester or Witney would say the choice is still fairly limited for £120,000, and you would incur travel costs commuting to work."

David Tompkins, of David Tompkins estate agents, Botley, said the cheapest property on his books was £125,000.

He said: "When it was put on the market we were inundated with inquiries. You might pick up the odd one in Barton or Blackbird Leys, but usually you can't get anything less than £120,000 within the Oxford ring road. You would have to look further afield, about a 10- to 15-mile radius outside the city." The Government-funded starter home scheme was introduced to help combat staff shortages, because of the high cost of living.

It is open to nursing staff at all Oxfordshire's major hospitals, health workers at the county's five primary care trusts, and Oxfordshire Social Services. Out of 80 places on the scheme, six people have already bought houses, 12 are in the preliminary stages of buying, and another 34 are applying to join.

Applicants usually buy 60 per cent of their new homes, which can be anywhere in the county, and rent the rest from Northcote Housing Association. They can buy the remaining share in the future.

Ian Humphries, facilities director for the Oxford Radcliffe Hospitals NHS Trust, said the scheme was a "demonstrable success" and managers were looking at ways to increase the project. He said: "The increased limit on purchase value is designed to give staff more flexibility and can particularly help couples and those seeking family accommodation.

"This is a first step in helping staff get into the housing market and provide affordable accommodation for our staff.

"We, along with our housing association partner Northcote, are monitoring the property price market and remain confident that the continuing programme will be a success in supporting our key worker accommodation needs."

Properties on the market in Oxfordshire which could be bought by starter home initiative applicants include:

One-bedroom semi-detached post-war house on housing-estate, Carterton -- £85,500

One-bedroom semi-detached flat on housing estate, Banbury -- £88,500

One-bedroom old flat on housing estate, Benson -- £89,000

Three-bedroom flat above a row of shops, Blackbird Leys -- £94, 950 Two-bedroom flat in a close, Blackbird Leys, east Oxford -- £105,000

One-bedroom modern semi-detached house on housing estate, Witney -- £109,500

Two-bedroom modern terraced flat with communal hall and landing on housing estate, Thame -- £112,000

One-bedroom modern terraced house, Wantage -- £112,000

Two-bedroom modern house on a terraced house in a close, Faringdon -- £115,000

Three-bedroom terraced house on housing estate, Abingdon -- £115,000

Three-bedroom semi-detached house in cul-de-sac, Chinnor -- £116,000

One-bedroom first floor semi-detached apartment, Rose Hill, Oxford -- £117,500

Three-bedroom flat above row of shops, Abingdon -- £119,950

Two-bedroom semi-detached house in a cul-de-sac, Bampton, near Witney -- £119,950