Buy-to-lets leading the way in a tough housing market

Oxford Mail: Daniel McCarthy says the buy-to-let market is booming Daniel McCarthy says the buy-to-let market is booming

A BOOMING rental market is making Oxford a buy-to-let hotspot.

The lettings market is showing no signs of slowing, with agents reporting 10 would-be tenants for each available property.

One- and two-bedroom apartments are snapped-up within days and sometimes hours of being advertised.

Demand is being fuelled by young professionals who cannot afford a deposit to get onto the property ladder and young families who already own a property but need more space.

Finding themselves unable to trade up, many let their homes so they can rent somewhere larger.

There is also a constant supply of visiting academics and medics looking for short-term rental accommodation while they work at the universities or hospitals.

It means property investors in the city could see a 5 per cent gross annual yield, based on average house prices from the Land Registry and average rental prices based on research by HSBC.

Daniel McCarthy, of Headington-based lettings agency Andrews, said Headington, Cowley and Summertown are particularly popular as they are within the ring road and have good transport links.

Mr McCarthy said: “A lot of people come here to study or work and as soon as a property goes live, we get huge interest.

“Buy-to-let is booming because there are so many people who believe they are better off investing in property than putting their money in a bank while interest rates are so low.”

Agents Finders Keepers recently sold almost all 27 apartments in the converted 1960s Grantham House on Cranham Street in Jericho to buy-to-let investors.

Once the build is complete in September, those with one bedrooms will be let for £1,200, while two-bedrooms will fetch £1,700 per month.

Frank Webster, chairman and head of investment division at Finders Keepers, said: “Most of these have been bought off-plan before they are even finished. People have ring-fenced capital especially for buy-to-let property in Oxford.”

Mother-of-two Alison Wilson lives in Abingdon but owns a number of properties in East Oxford and Headington.

She said Oxford is ideal for buy-to-let landlords because of its hospitals and two universities.

She added: “We are in our 50s and 20 years down the line, we are looking to provide an income when we are no longer earning.

“We try to do things properly which takes a bit more effort and money and we have invested heavily in these properties.

“With the hospitals and the universities, there are two ready markets in Oxford but tenants have higher expectations of what they want. Student housing at universities is of such a high standard now, when they move out they are looking for good spec.

WHAT YOU CAN GET FOR YOUR MONEY

WITH the average house price now at £356,000 in Oxford and average rents at almost £18,000 a year, landlords can expect returns on their investments which are among the highest in the country.
Two-bedroom apartments in Rose Hill and Barton command £950 per month, while a similar place in Jericho will net £1,700 per month.

“We try to run our business as ethically as we can, by working with good agents and complying with all the legislation.

“It’s a business like any other business.”

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Comments (3)

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10:10am Tue 3 Jun 14

museli says...

I don't know why this article is celebrating unaffordable rents being charged by profiteers buying up what used to be sheltered housing. £1,700 a month rent for a 2 bed flat is way too much for your average person.
I don't know why this article is celebrating unaffordable rents being charged by profiteers buying up what used to be sheltered housing. £1,700 a month rent for a 2 bed flat is way too much for your average person. museli
  • Score: 9

12:06pm Tue 3 Jun 14

Andrew:Oxford says...

It tells us there is a massive market for BTL investors in the new Barton Park development - a mere 5-10 minute walk from the back door of the John Radcliffe.

I am aware of one investor who is looking to secure a block of apartments to service the healthcare market. It's a good solid market accommodating people with secure jobs for 3-18 months.
It tells us there is a massive market for BTL investors in the new Barton Park development - a mere 5-10 minute walk from the back door of the John Radcliffe. I am aware of one investor who is looking to secure a block of apartments to service the healthcare market. It's a good solid market accommodating people with secure jobs for 3-18 months. Andrew:Oxford
  • Score: 0

12:35am Wed 4 Jun 14

gans shakes says...

This has to be said first:

Daniel, your "There's Something About Mary," Cameron Diaz, Hair Gel Look isn't a good one. I know, it's rough, but many of us have to embrace the receding hairline. You're a handsome chap that doesn't need that hairstyle.

Now about the Affordable Housing Crisis. £1700 pcm for a shoebox, two-up, two-down, with a 10:1 potential tenant to flat ratio is a frightening warning that is proving to be a letting market on the verge of becoming a bubble burst with predictions that will arrive very soon.

We were already at a 17 year waiting period for affordable housing. This is spreading to us from London and the Southeast, and we are incapable of housing our own. Salaries to keep the Service Industry are at the point of collapse, because with all of the education here salaries on offer can not afford those prices. Post-graduate research and study positions do not have the finances and will find the tipping point for this overheated speculative housing market spill-over.

Less than two weeks ago there was an article that was easily overlooked, but was in fact the first sign that woke me up to what were key facts in the economic illusion. The article mentioned that the people that were forcibly booted out of London and the Southeastern UK due to expansion of economic immigrants gave been scouting areas mentioned in the article. We are seeing the vultures grabbing these previously undesirable locations and transforming wide areas of formerly affordable properties for many, and gentrifying them at a breakneck pace.

The letting agencies realised that retaining the formerly low-cost and as little maintenance properties with insane returns on acquisitions quickly realised that the gravy train was over, so the City of London workforce seized the opportunities like the 27 Buy To Let properties that were Sheltered Tenancies in my neighbourhood of Jericho, and now it is grabbing every possible property that were non-University owned, and any former Housing Association properties within the Ring Road.

The recent article mentioned that so many displaced former citizens of London and Oxford residents that are on the lowest Band (5) and are not eligible for the Oxfordshire Property Bidding Registry because they are not habitual residents within the Ring Road (over six months) are being sent now to Cardiff and Birmingham. In fact every person/family that theoretically incapable of affording the cost of housing and living in their present location will be forcibly relocated.

Well, that is the plan, but it will not become successful, and those that are purchasing these overpriced properties will find that they are going to be in serious fiscal detritus as soon as the Canadian Head of the BoE ends this five year 0.5% rate, resulting into a housing bubble collapse, and this time the people that have been suffering will not offer further Corporate Welfare. It will be the end of creating a two state nation: Londinium, and what remains of the UK.

I expect that due to the second wave of the economic collapse within the spill-over of overpriced properties, we will finally shake off the corruption which brought us an embarrassingly low turnout last week, along with this ridiculous over-fawning media that does not grasp that London needs the participation from all of us. Dumping so many poor in locations like Cardiff and Birmingham is wrong. This bubble will burst.
This has to be said first: Daniel, your "There's Something About Mary," Cameron Diaz, Hair Gel Look isn't a good one. I know, it's rough, but many of us have to embrace the receding hairline. You're a handsome chap that doesn't need that hairstyle. Now about the Affordable Housing Crisis. £1700 pcm for a shoebox, two-up, two-down, with a 10:1 potential tenant to flat ratio is a frightening warning that is proving to be a letting market on the verge of becoming a bubble burst with predictions that will arrive very soon. We were already at a 17 year waiting period for affordable housing. This is spreading to us from London and the Southeast, and we are incapable of housing our own. Salaries to keep the Service Industry are at the point of collapse, because with all of the education here salaries on offer can not afford those prices. Post-graduate research and study positions do not have the finances and will find the tipping point for this overheated speculative housing market spill-over. Less than two weeks ago there was an article that was easily overlooked, but was in fact the first sign that woke me up to what were key facts in the economic illusion. The article mentioned that the people that were forcibly booted out of London and the Southeastern UK due to expansion of economic immigrants gave been scouting areas mentioned in the article. We are seeing the vultures grabbing these previously undesirable locations and transforming wide areas of formerly affordable properties for many, and gentrifying them at a breakneck pace. The letting agencies realised that retaining the formerly low-cost and as little maintenance properties with insane returns on acquisitions quickly realised that the gravy train was over, so the City of London workforce seized the opportunities like the 27 Buy To Let properties that were Sheltered Tenancies in my neighbourhood of Jericho, and now it is grabbing every possible property that were non-University owned, and any former Housing Association properties within the Ring Road. The recent article mentioned that so many displaced former citizens of London and Oxford residents that are on the lowest Band (5) and are not eligible for the Oxfordshire Property Bidding Registry because they are not habitual residents within the Ring Road (over six months) are being sent now to Cardiff and Birmingham. In fact every person/family that theoretically incapable of affording the cost of housing and living in their present location will be forcibly relocated. Well, that is the plan, but it will not become successful, and those that are purchasing these overpriced properties will find that they are going to be in serious fiscal detritus as soon as the Canadian Head of the BoE ends this five year 0.5% rate, resulting into a housing bubble collapse, and this time the people that have been suffering will not offer further Corporate Welfare. It will be the end of creating a two state nation: Londinium, and what remains of the UK. I expect that due to the second wave of the economic collapse within the spill-over of overpriced properties, we will finally shake off the corruption which brought us an embarrassingly low turnout last week, along with this ridiculous over-fawning media that does not grasp that London needs the participation from all of us. Dumping so many poor in locations like Cardiff and Birmingham is wrong. This bubble will burst. gans shakes
  • Score: 0

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