Central Oxford Vs Summertown

I was talking to a couple last week, who are considering becoming landlords for the first time, and they were looking for advice as to whether a property in central Oxford or Summertown would make a better Buy-to-Let investment. They were interested in which area would offer a better return/yield in addition to potential capital growth, and whilst properties in both areas can let and sell very well, I wanted to do a bit more research to help them with their decision.

Over the last 12 months, the average value of a property in OX1 has been around £429,000 at 8.7% growth; while in Summertown the average price in this period was £390,000 at 8.2% growth for the same period. To better understand the investment opportunities available, we considered the rents of the same three year period. The average rent achieved in OX1 was in the region of £1850 pcm, giving an average yield/return of approx 5.1%. In Summertown the average rent was slightly lower, at around £1800 pcm, with a corresponding yield/return of 5.5%.

However, one must also consider capital growth and how the value could change over time. In 2009, a property in OX1 would have cost approximately £354,000 and in Summertown the average value was £320,000. This shows that the average property value in OX1 has risen by 21% since 2009, and in Summertown it has risen by 22%. Ultimately, I found both areas to be equally good investments, but as you can see there is hardly any difference in the yields/returns or the increase in values, which we would not have been identified without that extra investigation. In this case, it depends on the best available property to buy on the day.

If you are a landlord, new or old, feel free to call into our office on Woodins Way, Oxford to ask my opinion on which property investment is best for you.