A former Oxford pub is the new £1.5m home of Kevin Maxwell, the son of disgraced newspaper tycoon Robert Maxwell.

Before Christmas, Kevin Maxwell escaped bankruptcy for a second time as he settled with creditors over his £33m debts.

It was the second time Mr Maxwell avoided bankruptcy in 18 months, a decade after becoming Britain's biggest bankrupt with debts of £400m.

Last week Kevin, 46, wife Pandora, 47, and their seven children are thought to have moved in to their new home, the former New Inn, a seven-bedroomed property in Nelson Street, Jericho, worth an estimated £1.5m.

In September, Mr Maxwell and his wife sold the former family home, Moulsford Manor, near Wallingford, to an unknown buyer for £2.5m.

It prompted Mrs Maxwell to conduct a garage sale, which ranged from candlesticks to her Mini Cooper car.

Father Michael Wright, vicar of St Barnabas Church, Jericho, welcomed the Maxwells to the community and said he knew their new house well. In 1982, he blessed the New Inn with its pub sign, a picture of a Madonna and Child.

Father Wright told the Sunday Express that the property had been a private residence for 15 years and added: "It has been converted into a marvellous private home with a big extension at the back."

"It's much bigger than most other houses in the area. The only drawback is a relatively small garden but that is more than compensated for by its location -- it is only 10 minutes from the centre of Oxford."

After Mr Maxwell's father, Robert, was found drowned off the coast of Tenerife in 1991, a £460m black hole was discovered in company pension funds.

Together with his brother Ian, Mr Maxwell was cleared of conspiracy to defraud the funds in the most expensive trial in British legal history.

Last month Kevin Maxwell reached an agreement with his creditors that will see them receive 3.3p for every £1 owed. He is now expected to resume his career as a property consultant.