The Current Rental Market in Oxford
The Current Rental Market in Oxford: Challenges, Reforms, and Future Outlook
Oxford’s rental market has long been one of the most expensive in the UK, with demand consistently outstripping supply. The city’s large student population, combined with a thriving professional workforce, puts immense pressure on available properties. In 2024, several key factors—including the Renters’ Reform Bill and upcoming EPC regulations—are shaping the landscape for both landlords and tenants.
Oxford’s Rental Market: A High-Demand, Low-Supply Reality
Oxford remains one of the least affordable places to rent in the UK. According to recent data, the average rent for a one-bedroom property in the city now exceeds £1,300 per month, with larger properties commanding even higher prices. With the highest number of rental properties in Oxford being priced between £2,000pm - £5,000pm*. Several factors contribute to this:
- High Student Demand – With the University of Oxford and Oxford Brookes University hosting over 40,000 students, student accommodation is in constant demand, often pushing prices up across the city.
- Limited Housing Supply – A combination of strict planning regulations and high property prices makes new housing developments slow and expensive. In Oxford 32.2% of private housing is rented in comparison to the National rate of 20.5%**.
- Growing Professional Population – Oxford’s role as a hub for science, technology, and education means more professionals seeking housing, adding further strain to rental availability.
As a result, competition is fierce, and properties are often snapped up within days of being listed.
The Renters’ Reform Bill: A Game-Changer for Tenants?
The Renters’ Reform Bill, first introduced in 2023, is set to bring significant changes to the private rental sector. The bill is aimed at making renting fairer and more secure for tenants while also holding landlords to higher standards. Key proposals include:
- Abolition of Section 21 “No-Fault” Evictions – Landlords will no longer be able to evict tenants without a valid reason, providing renters with more security.
- Introduction of Periodic Tenancies – Fixed-term contracts will be replaced by rolling tenancies, allowing tenants more flexibility to leave if conditions are unsatisfactory.
- Stronger Protections Against Rent Increases – Landlords will only be able to increase rent once per year and must provide two months’ notice.
- A New Property Ombudsman – A mandatory ombudsman for private landlords will be introduced to handle disputes.
For tenants in Oxford, these changes could provide greater stability, but for landlords, they introduce new challenges. Some property owners may choose to sell their rental properties rather than comply with stricter regulations, potentially reducing the already limited housing stock.
EPC Regulations: What Landlords and Tenants Need to Know
Energy efficiency remains a key issue in the rental market, with the government previously proposing stricter Energy Performance Certificate (EPC) requirements. Initially, the plan was to require all rental properties to have a minimum EPC rating of C for new tenancies by 2025 and for all tenancies by 2028. However, in September 2023, the government scrapped these proposals due to concerns about costs for landlords.
As it stands:
- The current legal requirement remains an EPC rating of E for rental properties.
- As of 2030 all private landlords will be required to meet a higher standard of EPC C or equivalent in their properties – up from the current level of EPC E ***.
Impact on Landlords and Tenants
- Many rental properties in Oxford are older and may struggle to meet higher efficiency standards if new rules are introduced.
- While energy-efficient homes lower tenants' energy bills, landlords could face high upgrade costs if future regulations demand stricter EPC requirements.
- Some landlords may proactively upgrade their properties to attract tenants looking for lower energy costs, even without a legal mandate.
What’s Next for Oxford’s Rental Market?
As the Renters’ Reform Bill progresses and EPC regulations tighten, Oxford’s rental market faces a period of transition. While these reforms aim to protect tenants and improve housing standards, there is concern that they could also lead to higher rents and fewer available properties if landlords decide to sell up.
For renters, staying informed about their rights and the evolving legal landscape is essential. For landlords, now is the time to assess properties for energy efficiency improvements and review tenancy agreements to align with upcoming legal changes.
Oxford’s rental market is likely to remain competitive, but with these shifts in policy, both landlords and tenants will need to adapt to the new reality.
At Oxford Property Consulting we can help prospective landlords find suitable opportunities for both short- and long-term growth portfolios. We have found suitable investments for clients ranging from 1 bedroom City apartments, to acquiring a car park in the City for a new block of flats to be built. For renters, the market is extremely competitive, with properties often being let before they go online. Please contact us if we can help with your onward search, or if you are looking for advice navigating the rental market in Oxford.