A couple of unusual climatic situations have conspired to
bring a chill wind to the rental market in Oxford. The “flash flood” of rental property hitting
the market after the stamp duty hike post April has resulted in over-supply
especially in certain areas such as Kidlington and the outskirts of the
city. Some (empty) 2 bed property has
been advertised for several months without much interest). This has been exacerbated by the inertia in
the market caused by the looming Brexit referendum……. During periods of
uncertainty the market always tends to slow down, and this has been no
It would appear that the slide in rentals that has effected
London (in particular at properties at the higher end of the market) over the
last 8 months or so, has also hit
Oxford, with some agents reporting a 20 to 30% drop in rental values for family
property over £2500 pcm. Ironically, HMO
values in the same bracket have risen…….. It may be that this is just a product
of the Article 4 directive preventing the market from flexing to adapt to
changes in need (historically, agents would have been able to offer larger
family home that have not let to sharers, but we are now prevented from doing
At College and County we like to keep our clients advised of
shifts in the local climate…… This allows us to flex rents to match the exact
current value, and keeps our voids down.
We pride ourselves on not having property empty unless it is new to us!
Zoopla has forecast that house prices will fall 20% if there
is a vote to leave in Thursday’s EU referendum.
Its prediction appeared in yesterday’s Mail on Sunday…… this seems
fairly alarmist to me; whilst I do think that transaction levels will stall if
there is a Brexit vote, and there may be some downward pressure on values as a
result, the main effect of Brexit on values will come from changes in the
interest rate. If our national credit
rating is negatively impacted, and subsequent interest rates take off, there
might be a significant downward shift in property values?