Oxford house prices over the last 12 months show postcode variation

Over the last month I have been asked by regular readers to help them understand what is going on with Oxford property prices, with several asking specifically ‘should I invest in Oxford right now?’.

You can be forgiven for being confused, the property news headlines can be contradictory on the same day!  Recently 3 different national newspapers use the same report to variously claim prices were recovering and recording growth, house prices were falling for the 4^th month in a row, and house price growth was sustained but weak!

The only way to get to the truth is to look at specific data for specific postcodes.  Using Rightmove data, I have looked some key Oxford postcodes to establish what is the true picture.

Overall property prices for properties sold on Rightmove over the last 12 months are 6% higher than for the prior 12-month period and 20% up since 2014.  That means anyone who has invested in Oxford property since 2014 has achieved a steady capital growth return.  So that’s great!

But, the true picture is more ‘granular’ than that.  By looking at comparable data for just 4 postcode segments (Headington; Cowley; Summertown; and, Jericho) it can be seen that the value of Oxford properties varies widely by location, as does the performance in terms of capital return.

Cowley has offered the best overall return, reflecting the performance of the City as a whole closely – prices are up 5% o the prior 12-month period and 20% up since 2014.  Cowley also continues to offer the best value for money overall.  At the other end of the spectrum is Jericho, where prices over the last 12-months are down 10% on th prior 12-month period and just 6% up on 2014.

The analysis points to markedly lower growth in property values in the expensive parts of Oxford, and relatively strong performance in those areas that offer relatively strong value for money.

For my article next week, I will expand this analysis to other postcode segments in and around Oxford, in the hope that it will further enlighten us all on where in Oxford the best returns in terms of capital value might be found.

To date, only the most expensive parts of Oxford are suffering real decreases in achieved prices, with Jericho and Summertown appearing ‘soft’ by comparison.  However, for landlords capital appreciation is just part of the story – rental yield also needs to be factored-in to calculate true return on investment.  Again, I will look to unpick this too over the coming weeks to give owner-occupiers and buy to let landlords understand the Oxford market a little better