The Best Areas of Oxford to Invest in Buy-to-Lets

Located in Oxfordshire, the renowned city of Dreaming Spires, Oxford is famous for its ancient heritage and world-famous university. Oxford is the perfect place to invest in buy-to-lets. 

Home to royalty and scholars since the 9th century, Oxford has become one of the top five most popular cities in the UK. It’s steeped in tradition and offers magnificent architecture, world-famous libraries, and prestigious universities. It also has a thriving arts scene with world-class museums like the Ashmolean to theatre companies such as the Royal Shakespeare Company. 

Where history and modern living intertwine, Oxford is home to vibrant neighbourhoods, charming shops, artisan markets, and unique eateries. The compact size of the city makes it an easily walkable and bikeable location with public transport to connect you with the wider region. It’s a perfect city for scholars, students, art lovers, and those looking for the perfect blend of traditional and modern living. 

Why invest in profitable Oxford buy-to-let opportunities?

Oxford offers a compelling proposition for buy-to-let investors seeking a stable and rewarding market. 

Oxford’s thriving academic scene, with over 20,000 students at the University of Oxford alone, creates a constant demand for rental properties. This ensures a high occupancy rate and a reliable rental income stream.

As a hub of innovation and research, Oxford attracts businesses and young professionals, leading to a growing population and a sustained demand for housing. This translates to potential capital appreciation for your buy-to-let property over time.

Oxford caters to a variety of renters. From students seeking shared accommodation to professionals requiring single units or family homes, the city presents opportunities for investors to cater to different needs and price points.

Oxford’s diverse economic landscape, encompassing tourism, education, healthcare, and technology, ensures stability. This reduces the risk of economic downturns significantly impacting the rental market. 

It offers more than just profitable buy-to-let opportunities; it’s an investment in a city that is constantly evolving and pushing boundaries. With its unwavering academic excellence, flourishing innovation scene, and diverse economy, Oxford provides a solid foundation for a successful and rewarding investment.

Regeneration projects in Oxford

Oxford is on a mission to build a world-class city for everyone. It boasts various regeneration projects, transforming Oxford into a world-class city.

These new regeneration projects provide affordable housing to residents within Oxfordshire. Sustainability is also at the heart of each of these projects to accomplish the goal of achieving targets of net zero carbon and net gain in biodiversity, both by 2035.

The following projects offer a variety of profitable buy-to-let opportunities in Oxford and promote the area to attract potential residents.

Blackbird Leys District Centre and Knights Road

On a mission to build affordable homes, Oxford City Council is working with Peabody to focus on developing housing in the district centre. This project aims to deliver 210 homes of which 83% will be social or affordable rent and 17% for shared ownership.

As part of this project, the aim is to develop open green spaces such as community gardens to contribute to creating a sustainable and environmentally friendly neighbourhood. This development will also provide new and improved shops, a new community centre, improved road infrastructure, and a segregated cycle route.  

By creating community space, this project aims to promote intergenerational living by bringing people together through the community centre and the shared open spaces.

Bridges Cross, Speedwell Street

Previously known to Oxford residents as the site of the former homeless hostel Lucy Faithfull House and sitting on the site of a 13th-century Dominican Order friary, this development is located in the heart of the city centre.

As part of the city’s aim to provide affordable and sustainable housing, Bridges Cross provides 36 homes consisting of 18 one-bed flats, 17 two-bed flats, and one three-bed flat.

Nearly three-quarters (72%) of Bridges Cross is affordable and our rooftop solar PV panels will help generate up to 60% of the development’s overall energy use, contributing to our overall affordable and sustainable goals.

East Oxford Community Centre Development

This project aims to create a sustainable, cultural hub for future generations. What was once an old school building will be refurbished to create a new kitchen, toilets, and more flexible community spaces. This project will also deliver 12 energy-efficient flats in the heart of this new community.

Oxford Train Station

Oxford City Council is working with Network Rail to create a new through-track and platform to allow more passenger and freight trains to connect across Oxfordshire and the country, on top of the four new trains an hour direct to/from Cambridge already planned with East West Rail.

This new track will require a new station building to be built. This is part of the city’s master plan to find the best option to re-provide the main station building, bus interchange, and walking and cycling provision, including an enhanced public realm and a new pedestrian and cycle bridge over Botley Road.

Oxford Historic Covered Market Development

Oxford City Council is working on a £6.87m redevelopment of Oxford’s historic Covered Market.

The project will see the entrances in High Street and Market Street transformed, larger seating areas inside the market, and a new outdoor seating area in a more pedestrian-friendly Market Street.

This project will provide new communal space, improved entrances to the market, new outdoor seating and public toilets as well as trader storage, facilities, and electric charging points.

Things to do in Oxford

Attracting approximately 8 million visitors a year, Oxford has an array of activities for people of all ages to explore. Here are just some of the top attractions:

• Explore the world-famous University of Oxford: Explore the ancient and modern colleges where the likes of C.S. Lewis, J.R.R Tolkien, and Theresa May attended.
• Shop at Westgate shopping centre: indulge in retail therapy with over 100 shops to choose from.
• Visit the Ashmolean Museum: Discover half a million years of art and archaeology, from Egyptian mummies to modern art.
• Discover the Bodleian Library: One of the oldest libraries in Europe and the main research library of the University of Oxford. 
• Take in the green spaces: connect with nature in one of Oxford’s many parks such as Christ Church Meadow or Hinksey Park.

Transport and accessibility

Oxford boasts a well-integrated transportation network, making it easily accessible from all corners of the UK and beyond. Here’s a look at the diverse travel options Oxford offers:

• Efficient Road Network: Oxford sits at the convergence of major roads, including the M40 leading to London and the A34 providing easy access to the Midlands and South Coast. This excellent road connectivity ensures convenient travel for residents and visitors alike.
• Railway Hub: Oxford Railway Station provides direct connections to major cities, including London (just over an hour by train), Birmingham, Manchester, and Bristol. This frequent and reliable train service makes Oxford a well-connected hub for business and leisure travel.
• Air Links: While Oxford itself doesn’t have an airport, major airports like Heathrow and Birmingham are within easy reach by car, coach, or train. This allows for convenient connections to domestic and international destinations.
• Bus Network: Oxford’s extensive bus network offers convenient and affordable public transport within the city and surrounding areas. Frequent services connect various neighbourhoods, university campuses, and popular tourist destinations.
• Cycling Paradise: Oxford is renowned for its cycling-friendly infrastructure. With dedicated bike lanes, traffic calming measures, and a strong cycling culture, the city encourages sustainable and healthy travel options.
• Looking Ahead: The city is constantly exploring innovative ways to improve local mobility. Initiatives like e-scooter trials and feasibility studies for water taxis demonstrate Oxford’s commitment to providing residents with a variety of convenient and eco-friendly transportation choices.

Oxford’s well-developed transportation network makes it a truly accessible city. Whether you’re arriving by car, train, bus, or bike, Oxford offers seamless connections that allow you to explore its rich history, vibrant culture, and world-class academic scene with ease.

Property market overview

Oxford presents a compelling opportunity for investors seeking a stable and rewarding buy-to-let market. 

Due to the constant stream of students, there is a high demand for rental properties. This translates to reliable occupancy rates and consistent rental income.

Plus Oxford’s rich history and world-renowned academic reputation attract tourists and professionals alike, creating a diverse tenant pool and sustained demand for housing across various price points.

Beyond tourism and education, Oxford boasts a flourishing technology and research sector, ensuring a robust and resilient economy that underpins the rental market.

According to Zoopla, the average price for a terraced house in Oxford in the last 12 months was £544,502. This figure, coupled with Oxford’s strong rental market, suggests the potential for capital appreciation alongside rental income.

With a vibrant property market, Oxford offers a variety of investment opportunities. Whether you seek a period property, a modern apartment, or a student-friendly townhouse, you’ll find a wide range of options to suit your investment goals. You’ll be sure to find the perfect area for you to invest in buy-to-lets.

Rental yield

Reports indicate a significant rise in rental prices across Oxford. According to Home, the average rent for a two-bedroom house currently sits at £2,179 pcm and a five-bedroom house at £3,607 pcm. This upward trend suggests promising potential for investors.

Oxford’s diverse economy, fueled by education, research, and technology, positions the city for continued growth. This economic strength is likely to sustain demand for rental properties, potentially leading to further rental price increases in the long term.

As an investor, it is important to conduct thorough market research before making any investment decisions as the market can be influenced by various factors.

The best areas of Oxford to invest in buy-to-lets

Now, let’s take a look at the best areas in Oxford to invest in buy-to-lets, taking into consideration all the information we’ve just looked at.

Blackbird Leys

This neighbourhood offers budget-friendly semi-detached and terraced houses at a lower cost per square metre compared to central Oxford. 

Its reputation is improving alongside ongoing community development projects, fostering a diverse mix of residents and hinting at future property value growth.

Properties in Blackbird Leys had an average price of £324,419 over the past year. Sold prices in Blackbird Leys over the past year were 3% down on the previous year offering an opportunity to investors.

With an average monthly rent of £1500, the rental yield is a high 5.5%, making it a profitable choice for investors.

Jericho

Jericho offers a vibrant mix of urban living and historical charm, attracting those who can afford its steeper price tag. 

Terraced houses and converted apartments line the streets, buzzing with a diverse community of students, academics, and media professionals. 

While the constant activity and central location might be overwhelming for some, many find the lively social scene and cultural richness a worthwhile trade-off for a prime Oxford experience.

Terraced properties in Jericho sold for an average of £1,032,079, with semi-detached properties fetching £1,791,654.

The average rent is £2,283 pcm per month in Jericho, leading to a rental yield of approximately 5-6%.

East Oxford

East Oxford has transformed into a vibrant hub for young professionals, artists, and families. 

Affordable housing, particularly compared to established areas, attracts first-time buyers, while independent shops and cafes fuel a strong sense of community and cultural diversity. East Oxford offers a dynamic and potentially rewarding investment opportunity.

Headington

Headington, once known for its modest charm, has become a popular choice for families, healthcare professionals, and academics drawn to its excellent schools, local amenities, and proximity to universities and hospitals. 

Headington offers a strong sense of community, good value for property compared to central Oxford, and the potential for future growth in property prices.

The average price of properties in Headington was £513,180 over the last year and sold prices were 3% down on the previous year.

One-bedroom apartments and student accommodations in Headington are popular, with rents for a one-bedroom flat averaging £1,100 per month, leading to a yield of 4-5%.

Cowley

Cowley has become a trendy and affordable entry point to Oxford living. Young professionals and families flock to this diverse neighbourhood for its mix of Victorian terraces, modern apartments, and lively high street brimming with shops and amenities. 

Cowley offers a unique blend of affordability, cultural richness, and a vibrant community atmosphere.

Properties in Cowley had an overall average price of £486,753 over the last year and the majority of sales during the last year were terraced properties.

Ready to invest in a profitable Oxford buy-to-let?

Oxford presents a compelling opportunity for investors seeking a dynamic and profitable buy-to-let market. 

The city is undergoing exciting regeneration projects, creating a vibrant and modern living environment. Increased accessibility through improved travel infrastructure and the development of affordable housing further increase the city’s appeal to residents and tenants alike. Oxford’s thriving academic scene, coupled with a diverse and growing economy, positions the city for continued success. By investing in a buy-to-let property in Oxford, you can become a part of this dynamic growth story

Protecting your buy-to-let property with robust insurance is crucial. Here’s where CIA comes in. We offer comprehensive buy-to-let insurance designed specifically for Oxford’s unique needs. 

Get a tailored quote today. With CIA, you don’t have to settle for a one-size-fits-all solution. We work closely with you to understand your specific needs and create a customised insurance plan that protects your Oxford buy-to-let investment.