Buying a house is a big decision and often comes with a lot of responsibility. However, you don’t have to worry about making the wrong choice because we’ve done your hard work. This article will show you whether or not prices are going up in Oxford.
The house price prediction by experts is that it will rise in the future, which is why there’s an increase in interest among real estate agents nowadays.
The market is still growing, with small houses becoming more popular than their bigger counterparts. Here is why house prices going up in Oxford:
The demand for homes is a key driver of price increases. A shortage of homes on the market can trigger bidding wars, which drive up prices by driving up the cost of construction and land.
In addition, when there are fewer homes available for sale, this forces homebuyers to compete with each other for their dream home.
For example, the number of people living in Oxford is going up. Such means that more people have to buy a house. Also, more people want to live in Oxford than houses available.
The rising demand for houses is also due to people who want to move here but cannot afford to buy one now because they do not earn enough money. There are many jobs in Oxford that pay well, attracting people from around the world.
Construction of new homes has been increasing across England since 2010, with more than 100,000 new homes being built each year on average. These are typically sold at lower prices than older properties, so when they are snapped up quickly by first-time buyers, house prices rise quickly.
New builds have become more popular with people wanting a new property within their budget. Most people can’t afford the average house price, so builders offer smaller properties at affordable prices. These new homes offer something different from existing properties and help attract buyers who want something different from what they’ve seen.
New homes are being built at an unprecedented rate, but they are not all being bought by students.
The Oxford House Price Index (OHPI) shows that house prices increased by 1% in 2016 and 0.7% in 2017, making Oxford one of the most expensive student cities in the UK.
Rising Mortgage Lending Rates
The Bank of England base rate has been at 0% for seven years, but from March 2019, it began rising towards 0.25%. While this increase may not seem like much, mortgage lending rates can be significantly higher than base rates.
As a result, it may impact homebuyers’ ability to afford their homes without taking out a mortgage larger than their salary income would allow them to repay comfortably.
High Employment Rate
The high employment rate, low unemployment rate, and growing population contribute to the increase in house prices.
In Oxford, the average house price is £425,000. The average price has increased by 8% over the past year. Also, this is higher than the national average of 7%.
The number of jobs in Oxford is increasing faster than in any other city in Britain. There are currently more than 5,000 jobs available in the city – around 10% more than there were ten years ago.
Over the past five years, the number of people born outside of the UK and later moved to Oxford has increased by nearly 20%. Notably, this has helped drive up property prices in the region.
Many Colleges and Universities
Many colleges and universities are contributing to the rise in house prices. In particular, the number of students at Oxford and Cambridge is increasing. The number of students at these two universities has increased from about 6,000 to about 8,000 since 1995.
It could mean that more people are looking for accommodation in Oxford, and there is a greater demand for houses near these colleges. Look for Oxford property conveyancing solicitors to provide you the best legal assistance for buying and selling properties.
As you can see from all this information, there is no simple answer to the question of house prices in Oxford. There are many factors in the dynamic housing situation here, and it’s impossible to pin one down as being more influential than the others.
Whatever the reasons, there’s no denying that people have continued to flock to Oxford over the past few years, and they don’t seem likely to stop anytime soon.