There are over 15,000 flats in Oxford. This only represents around 7.9% of the housing stock here, with the national average being nearer 25%.
The average price of flats with one or two bedrooms in Oxford is around £270,000, which is, surprisingly, nearly 8% lower than 12 months ago.
You can buy a one bedroom flat in OX4 for a very reasonable £150,000. A landlord could achieve around £800 per month in rent. Even after paying the service charge, yields could reach around 6% per year. However, you must remember that every landlord's tax and interest rates are different, so it is essential to research your investment carefully before committing.
Finally, let's not forget about the potential increase in capital value of the property. I was looking at a flats re-devlopment in Southfield Road, just off the Cowley Road, and found that they had sold for around £79,000 in 2000. This has increased significantly in value over 5 years, to nearly £120,000 in 2005. The values have continued to grow and the flats are now being offered at around £150,000 in 2014.
If you would like some advice about what could make a good investment, please visit our offices on Woodin's Way, Paradise Street, in the city centre.
Lettings Manager, Martin & Co Oxford