Oxford is a wonderful place to live and probably there is nowhere better to put down roots than right in the heart of this beautiful place.
Oxford has always been regarded as a transient city, with visitors from all over the UK and overseas settling here for a year or two and then moving on. Property investors have been alive to this for many years and flourishing portfolios have been established by catering for the needs of this visiting population of renters.
However, whilst rents have continually risen, on average around 3% a year over the last 3 years, property values for Oxford city centre apartments have far exceeded this, resulting in falling gross rent yields. Even so, capital growth + current gross rent yields = a very solid investment.
But will it last? Oxford has just picked up the dubious title of “Least Affordable Place to Live in the UK” with the average property price now a staggering 11 times earnings.
Here are some examples of how prices for small city-centre apartments have gone through the roof:
Oxford Castle and Empress Court 1 bed apartments – 12.2% price increase since last year and 18.8% increase over the last 3 years.
The Stream Edge, Lower Fisher Row, 1 bed apartment – 9% price increase since last year and 14% increase over the last 3 years.
No. 5 Rewley Road, 2 bed apartment – sold for £312,000 in the summer of last year. If it returned to the market now it would sell for at least £330,000.
Rowland Hill Court, 2 bed apartments – Selling prices were comparable to Rewley Road but one has recently sold at around £370,000
The Lion Brewery. We are pretty confident that should any of the larger 1 bed apartments come to the market then the asking price will be around £380,000.
If you have similar examples in your portfolio, and feel you should be considering locking in profits, now could be a good idea to talk to me. I am here every day at our Martin & Co city-centre offices in Woodin's Way, just off Paradise Street, Oxford. Call in or speak to me on01865 812110.We have several cash investors who are prepared to take a long-term view, even if current prices are not sustainable in the short-term, and are looking to buy in Oxford city centre now.