The Oxfordshire property market in one minute
We are regularly asked for our synopsis on the present state of the Oxfordshire property market, and our difficulty is often knowing where to stop talking! With innumerable local, national and international influencing factors there is always more that could be said. We thought therefore the challenge to summarise the most prevalent current market characteristics in just 60 seconds might be an interesting one, so here goes!
"What we anticipated would be the sole driver of the 2021 Oxfordshire property market, that being the stamp duty relief period, might not have proven quite to be the case.
With the main tax relief period ending on 30 June, and the subsequent relief on purchases up to £250,000 ending on 30 September, the relief period is now firmly behind us. There has since been no immediate drop in house prices, and neither has buyer activity slowed. Rightmove reports rises in both sale prices (+1.1%) and asking prices (+1.8%) from September to October. This tells us there must be other driving factors still at play.
The post pandemic remote working movement has benefitted the Oxfordshire market enormously. The north western edge of the Chilterns was once seen as the 'distance limit' for a daily London commute. This year however new home working rural exodus buyers have looked and settled further afield. In comparison with traditional commuter locations Oxfordshire offers an escape from prime 'Home Counties' price premiums, and also delivers vast areas of unspoilt countryside, convenient market towns and truly rural villages. This still comes with excellent access by road and rail, perfectly convenient the 'occasional' commuter. Cheaper and better? Now that's appealing!
Also interest rates remain particularly low and many people were fortunate enough to save considerably during the 2020 lock downs. As the economy stabilises the banks are mostly now resuming their lending confidence, and as a result the mortgage market is becoming increasingly competitive. Until interest rates rise there are good deals to be had, in some cases less than 1% on two year fixed rate mortgages.
Cheap borrowing, stamp duty tax relief and a new profile of buyers finding the Oxfordshire market to offer 'more for less' have combined to make 2021 and exceptionally buoyant year. The next test will be during Spring 2022 during which the usual influx of 'new stock' will come to market. A significant surge in supply has the potential to tip the supply and demand scales and could put some downwards pressure on house prices. We don't however foresee any dramatic shift as 2022 will also bring an intake of brand new buyers, and this should result in the continuation of a stable and possibly even rising local property market"