On the face of it, the Oxfordshire Rental Market has softened with rental demand moderating and supply edging up. However, it is important to note that this is in comparison with recent years of unusual activity levels in supply, demand and subsequently rents. Across our nine offices we have seen some homes taking slightly longer to let, or requiring rent adjustments, but this is simply the market normalising after a few frenetic years.
Rebalancing supply and demand
The rental market is experiencing its closest balance between supply and demand since 2020. We have seen a reduction in the number of phone and email enquiries year-on-year (Graph 1), although these remain higher than 2019 levels. At the same time, supply has increased with reports suggesting the total number of available rental listings in the UK is up 11% in 2025 to date, versus the same period in 20241.
Graph 1: Finders Keepers phone calls and emails from finders.co.uk, Rightmove and Zoopla)
First time buyers increasing rental supply
The Bank Rate has steadily decreased since last summer and so mortgage affordability for first-time buyers has improved. There has been a 30% jump in first-time buyer mortgages in the last year2, which has echoed across our offices with some tenants moving out of the rental sector, bringing those properties back to the market. This small trend looks set to continue as more tenants have been seeking flexibility at renewal with the intention of buying.
Letting, not selling
Another factor influencing supply is that all nine of our offices have reported fewer landlords have been trying to sell their properties compared to last year. At the same time, some who have tried to sell earlier in the year have not been able to do so and the properties have returned to the letting market. For example, a 3-bedroom house in Kidlington at £2,4753 and a 3-bedroom cottage just outside of Bicester at £1,600.
A small but significant increase in investment
Despite market challenges, there are positive signals in buy-to-let lending. New buy-to-let loans for home purchases were up 60% in Q1 2025 compared to Q1 20242. According to Companies House data, around 75% of new buy-to-let investments are now held in limited companies, primarily due to tax efficiencies.
Price sensitivity
While average rents continue to reach new records (Graph 2), the annual pace of growth is gradually slowing when compared with recent years. Some properties appear to be approaching their ceiling rents, which is not surprising following years of intense growth. Some regions are seeing price sensitivity on all properties and others are experiencing it on certain types or sizes of property where demand is weaker. For example, across the county family homes have taken longer to let or have required rent adjustments to align with market conditions.
Overall, demand remains strong for smaller properties and so rents are holding. However, where supply continues to outstrip demand, rents are having to be reviewed – even on smaller homes. Most landlords are being flexible and making reasonable adjustments based on market conditions.
Graph 2: Finders Keepers Average Rent
The fine line between testing and accuracy
While average rents remain strong, it is important to understand that the high rent increases of the pandemic years were temporary, and landlords should heed current market trends. Listing at a sensible rent and securing a good tenant is better than remaining anchored to an above-market rent and risking a void. For example, the owner of a 3-bedroom property in Bicester was keen to list it at a greater rent than we advised. After little interest, the rent was adjusted to our original valuation and two offers were quickly received. It is always possible to try for a strong rent, but landlords must be prepared to be flexible to avoid a void and ultimately maximise their income.
The importance of pricing and quality
A significant amount of tenants’ income goes on rent and, subsequently, they want value for money. Not only are more applicants querying running costs or the energy efficiency of properties, but they expect high quality properties if paying a high rent. Even at renewal some tenants are using rent increase negotiations as an opportunity to press the landlord for improvements to the property in return. Properties that are well-presented, well-maintained, and offer good value for money continue to achieve the best results.
Overseas applicants
Net migration levels have fallen4, impacting rental demand nationally. However, Oxford has continued to attract people from all over the world to the University, hospitals, and scientific institutions. Oxford’s first Built-to- Rent development, The Kimmeridge (main photo), in Botley has dominated this quarter in Oxford. Most tenants who have rented there have strong academic connections as well as medical and automotive links and they have been attracted to the modern, smart accommodation.
Priorities and requirements
In most cases, a landlord’s priorities are finding reliable tenants, ensuring properties are well-maintained, and staying compliant with regulations. Whilst a good agent can reduce the stress around compliance, landlords can hugely influence attracting good tenants who will look after the property. Providing a quality property in good condition will not only attract a good tenant at a good rent, but it is more likely that the tenant will look after the property well. Over this quarter we have seen landlords carrying out works to their property – either out of necessity or with a view to improving it:
- A 3-bedroom apartment in North Oxford had a kitchen upgrade and achieved an 18.6% increase in rent.
- A 2-bedroom apartment in Woodstock (Photo below) was refurbished throughout and achieved a 36.1% rent increase.
- A 2-bedroom house in Bicester had a new kitchen and bathroom before letting at a 23.9% increase.
If you would like to discuss improvements to your property, at a budget to suit you, contact [email protected]
Planned growth across Oxfordshire
Oxfordshire’s appeal is set to continue thanks to its strong local economy, world-class academic institutions and employers that attract people from all over. The planned growth and expansion across the county will create new jobs and strengthen the county’s appeal to high-value tenants and investors. Some of the areas of expansion include:
The Renters’ Rights Bill
According to Rightmove’s recent Letting Focus Report only 43% of surveyed landlords were aware of the Renters’ Rights Bill (RRB) and its likely impact. Our recent seminar, Property Intelligence, updated attendees on key parts of the bill and we continue to monitor and update our clients as necessary. The next stage of the bill is (at the time of writing) expected to be in the House of Lords on 14th October after which it is likely to receive Royal Assent before implementation in the earlier part of 2026. www.finders.co.uk/rrb
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1 Rightmove’s Lettings in Focus, August 2025
2 Zoopla’s UK Rental Market Report, September 2025
3 All rents are marketing rents and per calendar month
4 Long Term International Migration Flows to and from the UK, The Migration Observatory
