How are Oxford house prices performing?

Over recent weeks I’ve been asked by several people to comment on how Oxford house prices have performed over 2016, and to consider how different parts of Oxford are performing relative to others.  I am here to serve, so here goes…..

Over the last 12 months there were 3,202 property transactions across Oxford which was 12% down on the previous 12-month period.  Despite a fall in volumes, Rightmove advises Oxford prices are 6% up on the previous year.  So reduced volumes have not been mirrored by reduced demand, which remains buoyant.

By property type, apartments have performed the best increasing 14.5% over the last 12 months, followed by detached houses at 7.1%, terraced at 6.4% and semi-detached at just 2.5%.

According to Rightmove, the average value of property sold last year in Oxford is £492,531 6% up on the previous year and 16% up since 2014.  However the spread in performance across Oxford’s main sub-markets is from -9% (Wolvercote) to +14% (Greater Leys).  When view for the period since 2014 the spread is from -6% (Wolvercote) to +30% (Greater Leys).  The top 5 performing areas of Oxford since 2014 are: Greater Leys (+30%); Kennington (+28%); Kidlington (+25%); Cumnor Hill (+23%); and, Boars Hill (+23%).  Over the last 12 months the picture looks quite different, the top 5 being: Greater Leys (+14%); Cumnor Hill (+13%); Kennington (+11%); Cowley (+11%); and, Marston (+8%).

This suggests that after a very strong showing in 2015, Kidlington has paused a little, consolidating the gains rising at a steadier 5% over the last 12 months.  However, it is interesting to note the strength of the market in Greater leys as people search for better affordability and for landlords stronger rental yields.  New developments in Cumnor Hill are lifting prices and transaction volume with prices up 13%, again offering good value and better rental yields for investors.

So how has Oxford performed relative to other UK cities?  Well the average house price in Cambridge is £472,590, and has increased in value by 16% since 2014 – closely matching Oxford which remains a little more expensive.  Bath has an average price of £442,250 but a stronger growth profile since 2014 of 22% which is comparable growth to neighbouring Bristol where an average property is considerably lower at £284,100.  It is also interesting to look at Oxford’s neighbour- Bicester where the average property is worth £312,539 some £180,000 below Oxford, showing comparable 2 year growth of 17%.

There remains an air of uncertainty despite positive economic data, but most commentators agree that Oxford should comfortably match the average UK market forecast of 6% to 6.5% increase in average prices during 2017.  Over the last 5 years Oxford property values have increased by 37%, 2017 looks set to add to that growth positively.