When it comes to property returns, Oxford is more like Bristol than Cambridge

LendInvest has released its latest Buy-to-let index, and interesting reading it makes too.  Oxford is a top 10 location Nationally for property investment.  Since 2010 Oxford has offered property investors on average 5.8% per annum capital growth on their property, ranking Oxford 7^th in the National index (taking London as a whole).

Over the last 12 months, Oxford has offered average rental yields of 5.5%, ranking around 8^th in the National index (taking London as a whole).

The total return on investment (RoI) provided by Oxford according to LendInvest is 11.3% (a measure of rental yield plus average annual capital gains per year).  Again placing Oxford in the top 10 Nationally (taking London as a whole).

In the current climate  I think you’ll agree returns look very strong indeed.  But, what City area is most like Oxford?  Cambridge?  Not really, Cambridge has performed more strongly than Oxford in the lastest index offering lower rental yields (5.1%) but very strong capital appreciation (14.1%).  Having lagged Oxford’s property market for several years, Cambridge is now offering strong annual capital returns reflecting the investment in the tech-sector.  Overall RoI in Cambridge is 9% according to LendInvest.

So, if not Cambridge which City is closest to Oxford.  Well, the answer might surprise many, Bristol is conspicuously close to Oxford in terms of the returns it has offered property investors – Rental yield 5.5%; Capital growth 5.8%; and, overall RoI only marginally ahead at 11.4%.

Both Oxford and Bristol offer investors a very well balanced investment that balances income based returns and capital appreciation over time.  Too often rental yield alone drives property decisions, but the best medium to long-term returns are delivered where the two sources of financial return maintain balance.