Oxford continues to offer robust resilient returns

Whilst uncertainty continues post-Brexit, Oxford remains a resilient market, that offers home owners and property investors strong returns during a period when interest rates seem likely to move into unchartered territory, leaving savers with little to no returns on their savings.

The UK’s GDP grew by 0.6% in the second quarter of 2016, exceeding the Bank of England forecast..  This data measures the pre-brexit economy and it is too soon to say whether this level will be sustained.  This week, however, new data from both the construction and manufacturing suggests that confidence and investment have been adversely hit, putting pressure on the Bank of England Monetary Policy Committee to reduce interest rates to a quarter of one percent.

The most recent UK House Price Index meanwhile reported a 1.1% rise in house prices in May taking the UK average to £211,230, up 8.1% on the same month last year.  Meanwhile Rightmove report that asking prices fell by 0.9% national in June, however, they highlight that a fall is typical for this time of year, albeit with this year’s dip being slightly higher than that experienced in recent years.

Over the last 12 months there were 3,672 property sales in Oxford, 3% up on the same period last year.  The average sale price was £391,040 or 85% above the National average.  The total value of sales completed was just under £1.5bn.

Overall, Oxford property has proven to be very resilient over the 3 months to June 2016, with value increases out-stripping the average for the South East of England.  Over this period, apartments have accounted for 25% of all sales or over £90m in value.  Just 3% of sales were new build properties.  Across all property types Oxford prices were up 12% over the last 12 months, compared to just 8% for the South East as a whole.

Over the last 12 months compared to the same period last year, Oxford apartments have delivered the best return on investment rising in value by nearly 17.5% compared with a rise of just 6.5% for apartments across the South East of England.  Oxford’s terraced houses rose by 7.7%; semi-detached houses by 9.1% and detached houses by 6.6% over the same 12-month period.  Only terraced houses have fallen behind the South East average during this period.

(Article 1st published in Oxfordshire Guardian Property Weekly 05/08/2016)