Oxford Buy-to-Let 2024 Guide

As a world-renowned city, Oxford commands significant property prices. According to Rightmove, Oxford is one of the most expensive places to purchase property in the United Kingdom. They put the average Oxford house price at £588,555.

Rightmove statistics show that the most popular properties in the area are semi-detached homes. These cost, on average, £610,526. Terraced houses sell for around £575,693 on average, while flats still cost a significant £332,300. In addition, Rightmove suggests Oxford property prices are 4% higher than 12 months prior and 8% higher than the recent 2020 peak.

The HM Land Registry UK House Price Index offers a more modest £482,715 average price in the city. However, it also shows a larger 4.4% price growth from June 2022 to June 2023. In comparison, the United Kingdom’s average property price is only £287,546. These figures mean Oxford houses are 50.7% more expensive than the national average.

There are a range of properties on offer in Oxford, including semi-detached and terraced properties and flats. As mentioned, property prices in this area are significantly higher than in the rest of the UK, so investors are likely to find greater affordability and robust capital growth elsewhere.

Over the last year, properties in Oxford had an overall average price of £610,526. The majority of these sales were semi-detached properties, which sold for an average of £641,634—terraced properties sold for an average of £575,693, with flats hitting an average of £332,300.

Overall, sold prices in Oxford were 6% higher than the previous year and 9% up on the 2021 peak of £558,329.

Cowley is an industrial and commercial hub in the southeast Oxford area. The Oxford Business Park is a big employer and attracts huge companies like the NHS, Oxfam, Royal Mail, British Gas and Oxford City Council.

Cowley Road is one of the cheaper property investment opportunities in Oxford. However, that still translates to a higher average price than the rest of the country. The area was once run-down. However, it is now an up-and-coming residential hotspot. The area is multicultural and known for the Cowley Road Carnival.

Average Property Prices in Cowley

The average property price in this area is £458,818.

Average Rental Yields in Cowley

Rental yields in this area are roughly 5%.

Headington is the largest suburb in Oxford. It is made up of multiple districts. These include Headington Hills and New Headington. The area has a high street, local amenities and exceptional access to the city centre.

Headington is popular with families, Oxford Brookes University students and John Radcliffe Hospital employees.

Average Property Prices in Headington

Property prices in OX3 are £522,367.

Average Rental Yields in Headington

Yields in OX3 are 4.1% on average.

World-Class University City

The university is one of the main reasons buy-to-let investors put up with high property prices in Oxford. Along with Cambridge, Oxford University is one of the most prestigious universities in the country. Interestingly, it is the oldest university in the English-speaking world.

Oxford University has over 26,000 students. Oxford Brookes has nearly 17,000 students. The university and student accommodation companies own many properties around the area. That being said, HMO properties may prove popular with students. With high rents and property prices, an HMO could garner a high rental yield and help tenants save money in the area.

However, Oxford University also serves as a huge tourist attraction. Short-term rental investments could serve this market well and lead to substantial capital appreciation.

Unparalleled Transport Links

Oxford offers a fantastic location for commuters who need to access other parts of the country. The city boasts excellent road and rail links. It is close to the M40, A34, A40 and A44. London is only an hour away.

In addition, new transport links are set to make Oxford even more appealing to tenants. The East-West Rail will connect Oxford with Milton Keynes, Cambridge, Bicester and Bedford. In addition, the Oxford-Cambridge Expressway will connect the city to the M1, allowing commuters more straightforward access to the north.

Oxford has some potential as a commuter town to London, but other cities have much cheaper property and cost of living. For example, you can find Luton property for sale at a much lower price.

Fantastic Economy

The Oxford economy is one of the best economies in the UK. A Demos-PwC report declared Oxford the best city for economic well-being and success.

While the universities are big employers – Oxford University employs around 14,000 people – the area also attracts well-paying industries.

These include:

• Health
• Education
• Technology
• Research
• Publishing

While investing in new-build properties offers certain advantages, they often come with a higher price tag than older residential properties.

Off-plan property investment presents a solution for accessing new builds at a more affordable rate. Investors engaging in off-plan purchases commit to a property before its construction completion, typically securing it at a discounted rate compared to market standards. Early involvement can result in substantial capital appreciation at a lower initial investment; its value naturally rises as the off-plan property nears completion.

Like most new-build investments, particularly in sought-after areas, robust rental demand is promising with off-plan properties, potentially leading to enhanced long-term yields.

The best off-plan developments are primarily concentrated in key investment hubs such as Liverpool and Manchester. While some off-plan opportunities might exist in Oxford, investors may discover more lucrative prospects elsewhere.