Oxfordshire’s housing market has seen a significant downturn, according to the latest figures from the Land Registry, with a 7.4% annual decline marking a worrying trend for homeowners and potential buyers alike.
December was a harsh month for Oxford’s housing market. The average property price fell to £434,370, showing a steep 9.6% decline from November. This drop was markedly sharper than the broader trend across the South East, where prices dipped by 1.9%, and starkly contrasted with a slight 0.1% increase across the UK.
This significant decrease contributed to an overall annual slump, with the average sale price in Oxford tumbling by £35,000. This downturn places Oxford 56th out of 64 local authorities in the South East for annual price growth, a concerning statistic for current and future homeowners in the area.
Comparisons and Context
While Oxford’s prices plummeted, other parts of the county fared slightly better, albeit still in the red. Cherwell, South Oxfordshire, and West Oxfordshire saw their property values decrease by 2.6%, 2.5%, and 1.2%, respectively. This paints a picture of a widespread, but unevenly distributed, downturn across the region.
On the flip side, Winchester emerged as a beacon of growth, boasting a 7.9% increase in property prices, with the average home costing £538,000. Conversely, Gosport faced the steepest decline, with property values falling by 11.5% to an average of £230,000, highlighting the volatile nature of the housing market across the South East.
The First-Time Buyer’s Market
First-time buyers in Oxford now face a slightly more accessible market, with the average property costing £381,000, down £32,000 from the previous year. However, this figure is still £21,000 higher than in December 2018, indicating that, while prices have dropped recently, the market has grown significantly over the last five years.
Former homeowners, on the other hand, are paying a premium, with the average property costing them £485,000 in December, 27.5% more than the amount spent by first-time buyers.
The Impact on Property Types
Detached houses in Oxford have been hit hardest, with their prices falling by 10.1% in December to an average of £901,020. This marks a 6.8% decrease over the past year, suggesting that larger, more expensive properties are bearing the brunt of the market downturn.
Despite the local slump, properties in Oxford are still fetching prices 15.2% higher than the South East average, which stood at £377,000 in December. This points to the enduring appeal of Oxford as a place to live, despite its recent market challenges.
A Call for Action
The recent price drops have reignited discussions about the affordability of housing in Oxford. Last October, local councillors and charities emphasised the urgent need to address the city’s spiraling housing costs, which had previously been rising at a rate unmatched in the South East. Concerns are mounting that the housing market is becoming increasingly inaccessible for young people and the city’s homeless population.
The Broader Picture
In the grand scheme of things, Oxford’s housing market contrasts sharply with the extremes of the South East’s property landscape. Elmbridge stands out as the most expensive area, with average property prices hitting £730,000, significantly higher than Oxford’s and a stark three times the average cost of homes in Gosport, the least expensive area.