Complete 2023 Guide.

Oxford Property Investment

Want To Make A Oxford Property Investment?

Ready to make an Oxford property investment?

This ultimate guide will reveal why you should invest in Oxford property in 2023.

We will also show you the best areas to buy a property in Oxford.

Let’s get into it:

Contents

  • Why invest in Oxford?
  • Why not invest in Oxford?
  • Is Oxford property a good investment?
  • Oxford property investment forecast
  • Oxford buy to let market
  • Top 5 best areas to invest in Oxford
  • Investment property for sale in Oxford
Your name *
Fill out this field
Email *
Please enter a valid email address.
Type Of Investor
Select an option
Buyer Status
Select an option
Phone Number *
Fill out this field
Message
Fill out this field
oxford-area-guide

Why Invest In Oxford? (4 Reasons)

Is Oxford a good place to invest?

Oxford has earned itself a reputation as an economic powerhouse and a global name in education, research and technology.

It’s especially popular amongst students and young professionals, with plenty of job opportunities and rental demand.

As a result, Oxford boasts high return potential in 2022.

So should you consider investing in Oxford?

Here are four reasons why investing in Oxford 2022 is a top choice this year:

  1. Oxford is a thriving university city

Oxford is one of the UK’s top educational hotspots with many universities and colleges.

The city boasts two main universities (the University of Oxford and Oxford Brookes University) with over 40,000 students and 17,667 employees.

In fact:

Students make up 27% of Oxford’s total population, all needing a roof over their heads.

That makes a buy-to-let investment in Oxford a wise choice as it’s unlikely that you will ever run out of tenants and rental income.

  1. Oxford boasts a massive economy 

Oxford has a very well-developed economy with around 4,730 businesses in different sectors, collectively employing over 118,000 people.

These sectors include universities, the public sector, publishing, tourism, hospitality and a growing digital sector.

The tourism scene is easily one of the most developed in Oxford, attracting approximately seven million visitors annually and generating £780 million of income for local businesses.

That makes Oxford a perfect destination for holiday lets.

But that’s not all:

Plenty of regeneration projects are set to expand Oxford’s economy even further.

The East-West Rail project is one major development to reconnect Oxford and Cambridge while building new links to Bicester and Bedford.

It will provide direct rail services and significantly improve the region’s accessibility.

  1. The Oxford property market has had Consistent long-term growth

Oxford property prices have increased at a steady rate over the last decade.

Over the last 12 months, Oxford’s average house prices have increased by 4.84%.

And over the last five and 10 years, they’ve increased by 12.54% and 60.91%, respectively.

Although these growth rates aren’t particularly spectacular, Oxford property investment does outperform some very popular cities.

City Average House Price 12-Month Price Growth Five-year price growth 10-year price growth
Oxford £459,055 4.84% 12.54% 60.91%
Cambridge £508,914 12.20% 19.68% 78.07%
London £529,829 7.86% 10.43% 77.16%
Brighton £423,003 7.90% 21.83% 72.42%
Southampton £239,970 10.27% 19.16% 57.90%
Portsmouth £249,151 10.87% 24.86% 70.43%

For instance, Oxford property investment has a higher capital growth than London over five years, and Southampton over 10 years (as of April 2022).

Unfortunately, that’s where the good news ends.

Oxford has one of the worst 12-month growth rates in the South East of England while also having a fairly mediocre five-year growth.

But Oxford and the South East is expected to see a strong house price increase over the next five years.

According to JLL, South East property prices will rise by 22% between 2022 and 2026 – higher than other English regions and welcome news for Oxford investors.

  1. Oxford generates great rental income 

The city of Oxford had an average rental value of £2,273 PCM in July 2022 – generating an average rental yield of 5.94%.

This is an impressive rate of return in the South East, and beats out some other popular UK cities.

City Average Rental Income (PCM) Average Rental Yield
Oxford £2,273 5.94%
Cambridge £1,792 4.22%
London £3,855 8.73%
Brighton £2,075 5.89%
Southampton £1,315 6.58%
Portsmouth £1,130 5.44%

 

As you can see from the table, Oxford has the second-highest level of average income in the South East.

 

It also boasts the third-highest rental returns, showing that Oxford can be a great place for income-focused investors.

Why shouldn’t you invest in Oxford? 

If you’re looking to invest in Oxford property, you also need to know why you shouldn’t.

First up are the house prices.

Properties in Oxford can be on the pricier side, with a huge average of £459,055 in April 2022.

This is over £180,000 higher than the UK average.

In fact:

Oxford property investment is more expensive than Southampton and Brighton while offering similar levels of returns.

Returns are also dramatically lower than London’s, while average house prices are fairly close.

So, if you’re on a budget, you should consider other cities before investing in Oxford properties.

Is Oxford property a good investment?

We’ve covered why you should or shouldn’t invest in Oxford property.

But we haven’t answered the most important question of all:

Is Oxford property a good UK investment in 2022?

Oxford property can be a very good investment choice if you want to buy-to-let.

With job opportunities, regeneration projects, and increasing student housing demand, the population in Oxford is rapidly rising, and the property market can’t keep up.

According to Plumpot, around 8,700 properties were sold in Oxfordshire between November 2020 and October 2021 – a 7.8% increase over the previous year.

All that makes Oxford a desirable location for buy to let investors from across the globe.

Oxford property investment forecast 2022- 2026 

Although there’s no way to predict what will happen to the Oxford property market, we can make an informed guess based on what the experts think.

According to the latest predictions by JLL, the Oxford property market is set for  considerable growth over the coming years.

JLL says that Oxford will see a 5.0% property price growth in 2022 and is expected to stay the same over 2023.

While growth rates will drop slightly in 2024, 2025, and 2026, the Oxford property market is expected to see an average price growth of 4.4% per year – the second-highest predicted regional growth behind London.

Overall, the future looks bright for Oxford property investment.

Oxford buy to let market 

As we’ve mentioned before, buying a property to let in Oxford can be profitable with high long-term returns and impressive gross yields.

But to make the best investment possible, you must consider what’s driving the property market to see if a long-term investment is sustainable.

In this section, we will explore how Oxford’s population, transport links, and amenities play an integral part in its success:

Population 

Over the past couple of years, Oxford has experienced a huge population boost.

According to 2022 population estimates from the World Population Review, there are currently 162,035 people living in Oxford.

A large part of that is students, with 33,430 enrolled in full time-education and 7,000 in part-time.

Oxford has the largest adult student population in England and Wales.

But that’s not all:

At the time of writing, 57,000 people are commuting into Oxford, seeking exceptional employment opportunities and a better quality of life.

That makes Oxford a perfect buy to let location to target students AND working professionals.

And with student applications increasing by 1,000-2,000 every year (despite COVID-19), the demand for student rental property will only get bigger!

Transport links 

It’s often said that location is everything in property investment, and Oxford prides itself on that.

The city boasts a variety of rail and road links, located right on the M40, A40, A34 and A44, with direct access to London only an hour away!

Oxford is also famous for its airport, which has been the fastest-growing airport for private and business aviation in the UK since 2007.

Amenities 

With a large market of shopping centres, delicious restaurants and cultural hotspots, the quality of life in Oxford is like none other.

Shopping is centred on the bustling Queen Street, with Westgate Oxford, Clarendon Centre Oxford, and Templars Square providing a shopping and dining experience you will never forget.

If that wasn’t enough, residents could go on plenty of city-sightseeing tours by bus.

Or you can walk and explore the beautiful university campuses, the plethora of museums such as the Ashmolean Museum and the Museum of Oxford, and many more!

Tours are usually one hour long and run every 10/15 minutes, departing from the city centre

Property Investment Guide 2023

Top 5 best areas to invest in Oxford 

OX4 

Average House Price in OX4: £412,391 

Average Rental Yield in OX4: 6.32% 

The best area to invest in Oxford for rental yields in 2022 is the OX4 postcode.

This area generates an average return of 6.32% and covers East Oxford and Cowley – the city’s main industrial and commercial hub.

House prices in OX4 are fairly high at a whooping £412,391, but investors can still expect considerable rental returns of £2,173 per month.

Large companies and organisations such as the NHS, British Gas, Royal Mail and Oxfam reside here, making the area perfect for targeting working professionals.

OX12 

Average House Price in OX12: £365,153 

Average Rental Yield in OX12: 5.59% 

The second-best area to invest in Oxford for rental yields is the OX12 postcode.

OX12 covers the suburbs of West Berkshire, South Oxfordshire and Vale of White Horse.

Compared to other Oxford areas, house prices here are fairly reasonable at £365,153, with average rental returns of £1,700 per month recorded in July 2022.

This means investors can expect average returns of 5.59%.

OX15 

Average House Price in OX15: £475,345 

Average Rental Yield in OX15: 5.09% 

Based on our research, the OX15 postcode generates high returns in Oxford in 2022 with a considerable 5.09% gross return.

While house prices are higher than average at a whooping £475,345, the sizeable monthly rent of £2,015 means you can make a great investment here.

OX16 

Average House Price in OX16: £267,985 

Average Rental Yield in OX16: 5.04% 

The OX16 is a highly desirable area by investors due to the affordable house prices.

With one of the lowest averages in all of Oxford of £267,985, this area is certainly suitable for cheap property investment.

Rental returns are profitable, with a monthly average of £1,126, which generates an average yield of 5.04%.

OX13 

Average House Price in OX13: £582,541 

Average Rental Yield in OX13: 4.99% 

Finishing our list of the top 5 best areas to invest in Oxford is the OX13 postcode area.

OX13 is currently generating the fifth-highest yields in all of Oxford, with returns of 4.99%.

Properties here are on the pricier side, with an average of £582,541, but that is partly offset by the high rental return of £2,421 per month.

Want to learn more about Oxford property? Click here to learn more.

Want To Learn More About
Off Plan Property?

We’re ready to help you. Our expert is here, click below to learn more.