The Oxfordshire letting market continues to experience strong demand for well-presented, accurately priced properties according to our nine offices across the county. While stock levels have shown a slight improvement, they still fall short of meeting this demand.
Encouragingly, fewer landlords exited the market during April, May, and June compared to the previous six months, and we have started to see some adding to their portfolio - both factors offering some relief to ongoing stock shortages. We have also seen a positive increase in landlords improving their rental properties and achieving strong rent increases as a result.
Widening parameters
Although location remains important, applicants seem to be expanding their search areas. In Oxford, proximity to the city centre train station used to be a top requirement, whereas applicants are now willing to look across the whole city to include proximity to either Oxford or Parkway stations.
Similarly, our Woodstock office historically found that applicants only wanted to rent in the town itself, and they are now considering surrounding villages with one applicant even having a 20-mile radius that they would consider!
The offices outside of Oxford reported that applicants’ top requirement tends to be budget, with properties under £1,500 attracting the most interest. Both single occupants and couples will see anything within their budget rather than having specific requirements for, say, 2 bedrooms, space to work from home, or parking etc.
Value for money
A well-presented property that offers value for money will always achieve the best rent and attract good tenants who will look after it. This quarter has seen several landlords improving their properties, working with our internal renovation and interiors teams to agree designs within their budgets:
- A 3-bedroom apartment in North Oxford had a new kitchen, new flooring, and redecoration, achieving an 18.6% increase (see main photo).
- A 2-bedroom house in Witney had new flooring, lighting, redecoration and a new kitchen, achieving a 37% increase in rent when re-let.
- A 4-bedroom family home in Summertown had a full redecoration, new carpet and new family bathroom, achieving a 55% rent increase.
- A 2-bedroom apartment in Banbury had a new bathroom and redecoration, achieving a 12.8% increase in rent.
Speak to our renovations or interiors teams to find out what is achievable within your budget: [email protected]
Flexibility required around rents
Properties in the best condition in good locations continue to achieve reasonable rent increases when relisted. It is always possible to try for a strong rent increase, but it is vital to be flexible and act quickly if the market changes. For example, a 2-bedroom apartment in the city centre was relisted at an 8% increase and although there was a decent level of interest, no offers were made and so the landlord was advised to reduce the rent. The property then let two days later, achieving a 4.8% increase on the previous tenancy.
Bargaining at renewal
Proposed rent increases at renewal are always at market rates and in-line with RPI and these are mostly accepted by tenants. At the same time, some tenants are using this as an opportunity to negotiate with the landlord, requesting break clauses, improvement works to be done, or permission to keep a pet in return for agreeing to the increase. We advise landlords on a case-by-case basis, as it can sometimes be better to compromise for the sake of retaining a good tenant.
Time to consider pets
According to a 2024 survey, it was estimated that 13.5 million dogs and 12.5 million cats were living in UK homes1. It is no wonder this is a key factor of the Renters' Rights Bill, and this certainly translates to Oxfordshire’s lettings market, with many applicants having a cat or dog. Family homes and rural properties are going to appeal to pet owners and many landlords are realistic about this, which provides them with a greater choice of applicants. For example, a 1-bedroom cottage in Wolvercote had interest from multiple applicants, including a couple with a small dog. The landlord agreed to let to this couple at a slightly higher ‘pet rent’ as they were the best suited applicants for this property. Similarly, the owner of a 2-bedroom property in Charlbury (photo above) was willing to let to a couple with a dog as she lives locally and understands that the property and village location is likely to attract dog owners.
Fewer landlords exiting the market
Much to the relief of tenants, the flow of landlords selling has abated across all offices in Q2. Where properties have not sold, we have been able to swiftly re-let them, for example a 4-bedroom family home in Oxford city centre at £2,4002, a 2-bedroom apartment in North Oxford at £1,575 and a 2-bedroom apartment in Woodstock at £1,800.
Switching to managed
Across our offices we have seen an increase in the number of landlords switching from a Let Only to a Fully Managed service. Although the reasoning has been mostly to free up time, it is interesting that landlords are making this switch ahead of rental reform. It is also sensible; the cost of a fully managed service will certainly be less than penalties for not following the new legislation when it comes into effect.
Adding to portfolios
The number of loans for new buy-to-let purchases was up by more than 46% in Q4 2024 versus the same period in 20233. We have also seen a number of investor landlords expanding their portfolio or even starting a portfolio. For example, our team in Witney has let four apartments within a small development in North Leigh (photo above) for a client who is expanding their portfolio mix. In Oxford, a client who had previously exited the market is in the process of purchasing a 1-bedroom apartment in Summertown to let out, and our team in Headington is working with a couple looking to invest in a 2-bedroom apartment as part of their retirement planning. If you’re looking to add to your portfolio we can help whether you’re looking to buy a property, an existing portfolio, or invest in a small development.
Life goes on
This quarter has seen a shift in tenant awareness of upcoming legislative changes with any tenants (mostly outside of Oxford) requesting to switch to periodic tenancies at renewal. The removal of fixed-term tenancies will provide tenants with more flexibility to move if they are relocating or buying a property.
This flexibility may sound scary to landlords, however the reality is that fixed-term tenancies could always be surrendered if the tenant needed to leave. We don’t predict a huge change in people’s behaviour: they will still get new jobs and relocate, couples will move in together or separate, families will grow. None of this will change or happen more frequently simply because fixed tenancies are ending.
Looking Ahead
We continue to monitor the progress of the Renters' Rights Bill. Although it was expected to receive Royal Assent by the end of July, that is now looking unlikely4.We continue to assure landlords that this legislation is not targeting good landlords who maintain their properties and are fair to their tenants. You can read more about the bill at www.finders.co.uk/rrb
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Expansion in East Oxford
Our Headington office is often inundated with enquiries from people coming to work at the business park, science park and hospitals. The expansion of the Oxford Science and Technology park – expected to complete next year – is likely to see demand levels continue from renters looking to live nearby.
Furthermore, Oxford City Council say they are “confident” they will secure the necessary funding for reopening the Cowley Branch Line5. The project will create two new stations in East Oxford and a new direct service to London Marylebone running twice hourly and is expected to boost the wider local economy, creating between 6,000-10,000 new jobs.
1 Statista.com, Leading pets ranked by estimated population size in the United Kingdom (UK) in 2024 (in millions)
2 All rents are marketing rents and per calendar month.
3 www.lettingagenttoday.co.uk/breaking-news/2025/06/arefalling-interest-rates-giving-buy-to-let-a-new-lease-of-life
4 Pickard, Strauss and Kissin (2025). UK worker rights overhaul among bills delayed until at least autumn [online] Available at: www.ft.com/content/586853d3-65cb-4c62-a7c2-f06a49e1e279
5 (www.oxfordmail.co.uk/news/25234628. oxford-council-confident-cowley-branch-line-funding)
