Headington outperforms Abingdon on Buy to Let

A landlord with a small property portfolio came into our office on Woodins Way last week. He lives between Headington and Abingdon, and has properties in both towns. He wanted to ask our opinion on where he should his next Buy to Let property.

Looking at Headington, the average property price can be an impressive £379,068 and the average rent is equally high at £1295 per month. In Headington , an average property is £341,687 however the average rent is only £925 per month. The annual yield in Abingdon could be only 3.3% per year, compared to Headington where he could achieve an annual yield of nearer 4.2%.

It made me consider two other towns close by, Witney and Didcot. In Witney, it was no surprise to find property values are much lower than in Headington, with an average property price of £292,400. Interestingly thought they have an average rent of £1000 per month, which could achieve a yield of 4.1% which is very similar to Headington. The average price of a property in Didcot is £297,408, with rents of around £875 per month. This could achieve a yield of 3.5% per year.

It goes to show that Headington (representing Oxford ladies and gents) can be a good area for an investment property, but it is a decision that shouldn't be taken lightly. I stress these are only averages, so the yields for some small to medium sized properties in popular areas of Oxford can achieve yields of 5.5% to 7.5% per year. If you want to know our thoughts on property in Oxford , come into our office on Woodins Way or give me a call.

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