SOUTH Oxfordshire has the highest house prices of any rural authority in the country.

Figures from Halifax bank show the average price of a property in the district is £388,326 — 26 per cent higher than the same report showed in 2009.

It is the second year in succession that the area has topped the most expensive rural list. Experts say a combination of desirable large properties, proximity to London and beautiful locations have combined to send values spiralling.

James Gesner, of Didcot-based Lesters estate agents, said: “There are a lot of big properties which pull up the average price and there aren’t many smaller houses in the villages.

“There are few properties at the bottom end of the market for first-time buyers. There are more available in Didcot and Wantage but less in Wallingford.”

Daniel Parrott, manager of the Wallingford branch of agents Buckell & Ballard, said many London commuters moved near Didcot Parkway station “wanting to buy into the rural lifestyle”.

“Another major factor is that many of the towns and villages in South Oxfordshire are on the Thames, which gives them much greater appeal,” he said.

South Oxfordshire District Council wants to allow thousands of new homes around Didcot to ease the shortage and make property more affordable.

Work has started on the 3,300-home Great Western Park, 650 homes are due to be built at Ladygrove East and 300 each are planned for the Orchard Centre extension and at Vauxhall Barracks.