Authored by the expert who managed and guided the team behind the United Kingdom Property Pack
Yes, the analysis of Oxford's property market is included in our pack
If you're looking into rental yields in Oxford, you've come to the right place because we constantly update this blog post with the latest data.
Oxford is a unique rental market shaped by world-famous universities, major hospitals, and research institutions that create consistent tenant demand year after year.
Below, we break down everything you need to know about Oxford rental yields in 2026, from gross and net returns to the best neighborhoods for income-focused investors.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Oxford.
Insights
- Oxford's average gross rental yield sits at around 4.6% in early 2026, which is moderate compared to other UK cities but supported by exceptionally stable tenant demand from universities and hospitals.
- Flats and maisonettes in Oxford deliver the highest gross yields at roughly 5.9%, while detached houses lag behind at around 3.0% because their purchase prices far outpace rental income.
- The yield gap between Oxford neighborhoods is significant, ranging from about 2.8% in prestige areas like Summertown to 6.5% in more affordable zones like Blackbird Leys.
- Net rental yields in Oxford typically fall to around 3.2% after accounting for management fees, service charges on flats, and maintenance costs that can eat up 25% to 35% of gross rent.
- Oxford landlords can expect vacancy periods of only 2 to 3 weeks per year on average, translating to a 3% to 6% void allowance, thanks to persistent renter demand.
- Service charges on Oxford flats have been rising and can be the single largest recurring cost after mortgage payments, significantly compressing net yields on leasehold properties.
- High-yield areas like Cowley, Rose Hill, and Littlemore benefit from strong employment demand from nearby BMW/Mini facilities and hospital workers seeking affordable housing.
- The Oxpens regeneration project approved in January 2025 and Botley Road reopening expected in summer 2026 could push rents higher in West Oxford and near the train station.
What are the rental yields in Oxford as of 2026?
What's the average gross rental yield in Oxford as of 2026?
As of early 2026, the average gross rental yield in Oxford sits at approximately 4.6%, calculated from an average monthly rent of £1,915 and an average property price of £505,000.
Most typical residential properties in Oxford fall within a gross yield range of about 4.0% to 5.2%, depending on property type and location within the city.
Compared to the broader UK average, Oxford's gross yields are moderate because property prices here are significantly higher than national norms, even though rents are also elevated.
The single most important factor influencing Oxford's gross yields right now is the extreme dispersion in purchase prices, where premium neighborhoods like North Oxford can cost three times as much as areas like Cowley for similar rental income potential.
What's the average net rental yield in Oxford as of 2026?
As of early 2026, the average net rental yield in Oxford is approximately 3.2%, after deducting typical operating costs but before financing and income tax.
The difference between gross and net yields in Oxford is usually around 1.0 to 1.5 percentage points, meaning landlords keep roughly 65% to 75% of their gross rental income after expenses.
In Oxford specifically, service charges on flats are often the expense that most significantly reduces gross yield to net yield, sometimes representing the single largest recurring cost after mortgage payments.
Net yields for standard investment properties in Oxford typically range from 2.7% to 3.7%, with the lower end reflecting properties with high service charges or full management fees, and the higher end representing well-maintained houses with minimal leasehold costs.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Oxford.
We made this infographic to show you how property prices in the UK compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What yield is considered "good" in Oxford in 2026?
A gross rental yield of 5.0% or higher is generally considered "good" by local investors in Oxford, as it means you're beating the citywide average of around 4.6%.
The threshold that typically separates average-performing properties from high-performing ones in Oxford is around 5.0% gross, and achieving 3.5% net or better usually requires either buying in more affordable areas or keeping management costs tightly controlled.
How much do yields vary by neighborhood in Oxford as of 2026?
As of early 2026, the spread in gross rental yields between Oxford's highest-yield and lowest-yield neighborhoods is substantial, ranging from approximately 2.8% to 6.5%.
Neighborhoods that typically deliver the highest rental yields in Oxford are more affordable areas with strong employment demand, such as Cowley, Blackbird Leys, Rose Hill, and Littlemore, where purchase prices are lower but rents remain solid due to proximity to hospitals and manufacturing jobs.
On the other hand, neighborhoods that typically deliver the lowest rental yields include prestige areas like Summertown, Jericho, Wolvercote, and prime Central Oxford streets, where high property prices compress returns even though rents are also elevated.
The main reason yields vary so much across Oxford neighborhoods is that purchase prices differ dramatically while rents remain relatively stable across the city, so areas with lower entry costs naturally produce higher percentage returns.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Oxford.
How much do yields vary by property type in Oxford as of 2026?
As of early 2026, gross rental yields across different property types in Oxford range from approximately 3.0% for detached houses up to around 5.9% for flats and maisonettes.
Flats and maisonettes currently deliver the highest average gross rental yield in Oxford at roughly 5.9%, based on an average rent of £1,519 per month against an average price of £311,000.
Detached houses currently deliver the lowest average gross rental yield in Oxford at around 3.0%, because their average price of over £1,000,000 far outpaces the rental income of approximately £2,532 per month.
The key reason yields differ between property types in Oxford is that rent doesn't scale proportionally with purchase price, so smaller and cheaper properties like flats capture a higher percentage return even though they generate less total rent.
By the way, you might want to read the following:
What's the typical vacancy rate in Oxford as of 2026?
As of early 2026, the estimated average residential vacancy rate in Oxford translates to roughly 3% to 6% economic vacancy, meaning landlords typically experience about 2 to 3 weeks of void time per year for a well-priced property.
Across different Oxford neighborhoods, vacancy rates can range from near-zero in high-demand areas like Headington to slightly higher in less central locations, though even the city's weakest areas benefit from strong baseline demand.
The main factor currently driving vacancy rates in Oxford is the structural demand from universities, hospitals, and research institutions, which creates a consistent pool of professional tenants and keeps letting times short.
Oxford's vacancy rate is lower than the national average because the city's employment anchors and student population create persistent rental demand that most UK towns simply don't have.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Oxford.
What's the rent-to-price ratio in Oxford as of 2026?
As of early 2026, Oxford's average rent-to-price ratio is approximately 0.38% per month, which translates to an annualized gross yield of around 4.6% based on £1,915 monthly rent and a £505,000 average property price.
A rent-to-price ratio of 0.4% per month or higher is generally considered favorable for buy-to-let investors in Oxford, and this ratio is simply another way of expressing gross rental yield since multiplying monthly rent-to-price by 12 gives you the annual gross return.
Compared to other major UK university cities, Oxford's rent-to-price ratio is relatively compressed because property prices here are exceptionally high, even though rents are also above average.
We have made this infographic to give you a quick and clear snapshot of the property market in the UK. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods and micro-areas in Oxford give the best yields as of 2026?
Where are the highest-yield areas in Oxford as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Oxford are Cowley, Blackbird Leys, and Rose Hill, all located in the eastern and southern parts of the city where property prices remain relatively affordable.
In these top-performing areas like Cowley, Rose Hill, and Littlemore, investors can typically expect gross rental yields ranging from around 5.2% to 6.5%, depending on the specific property and street.
The main characteristic these high-yield areas share is their combination of lower purchase prices with solid tenant demand from hospital workers, university support staff, and employees at nearby manufacturing facilities like BMW/Mini.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Oxford.
Where are the lowest-yield areas in Oxford as of 2026?
As of early 2026, the top three lowest-yield neighborhoods in Oxford are Summertown in North Oxford, Jericho, and Wolvercote, all prestigious areas known for their high property values and desirable lifestyle appeal.
In these low-yield areas, gross rental yields typically range from around 2.8% to 4.2%, with the most expensive streets in North Oxford and Jericho often falling below 3.5%.
The main reason yields are compressed in these Oxford neighborhoods is that purchase prices are driven by owner-occupier demand and scarcity value, pushing property costs to levels that rental income simply cannot match proportionally.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Oxford.
Which areas have the lowest vacancy in Oxford as of 2026?
As of early 2026, the top three neighborhoods with the lowest residential vacancy rates in Oxford are Headington, Cowley, and areas near the city centre with good transport links.
In these low-vacancy areas, landlords typically experience void periods of just 1 to 2 weeks per year, translating to vacancy rates of roughly 2% to 4%.
The main demand driver keeping vacancy low in Headington is the concentration of hospital and research jobs at John Radcliffe and Churchill hospitals, which creates a steady flow of medical professionals seeking nearby rental accommodation.
The trade-off investors typically face when targeting these low-vacancy areas is that Headington and inner Cowley can have higher entry prices than outer areas like Blackbird Leys, so while voids are minimal, gross yields may be slightly lower.
Which areas have the most renter demand in Oxford right now?
The top three neighborhoods currently experiencing the strongest renter demand in Oxford are Headington due to hospital employment, Cowley and East Oxford for affordability and amenities, and Jericho for young professionals seeking central living.
The type of renter profile driving most of this demand includes hospital staff and researchers in Headington, professional sharers and young families in Cowley, and university-linked young professionals in Jericho and the city centre.
In these high-demand Oxford neighborhoods, rental listings typically get filled within 1 to 3 weeks, with well-priced properties in Headington and Cowley often receiving multiple inquiries within days of listing.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Oxford.
Which upcoming projects could boost rents and rental yields in Oxford as of 2026?
As of early 2026, the top three upcoming projects expected to boost rents in Oxford are the Oxpens West End regeneration approved in January 2025, the Botley Road reopening scheduled for summer 2026, and the Headington medical research campus expansion.
The neighborhoods most likely to benefit from these projects are Osney and West Oxford near the station for the Botley Road works, the city centre edge for the Oxpens development, and Headington for the expanded research campus.
Investors might realistically expect rent increases of around 5% to 10% in directly affected areas once these projects complete, though the timing will depend on construction progress and broader market conditions.
You'll find our latest property market analysis about Oxford here.
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What property type should I buy for renting in Oxford as of 2026?
Between studios and larger units in Oxford, which performs best in 2026?
As of early 2026, smaller units like studios and one-bedroom flats tend to outperform larger units in Oxford in terms of rental yield, though larger units often offer better occupancy stability with families.
Studios and one-beds in Oxford typically deliver gross yields of around 5.5% to 6.5% (approximately £13,000 to £16,000 or $16,500 to $20,300 or €15,300 to €18,900 annual rent), while larger three-bedroom properties yield closer to 4.0% to 5.0%.
The main factor explaining why smaller units outperform is that rent per square metre peaks at the small end in Oxford, where single professionals and couples competing for central locations push rents higher relative to purchase costs.
However, larger units might actually be the better investment choice when targeting family tenants in areas like Headington or North Oxford, where longer tenancies and lower turnover can offset the yield gap.
What property types are in most demand in Oxford as of 2026?
As of early 2026, the most in-demand property type for renters in Oxford is the one to two-bedroom flat, particularly in locations with good access to hospitals, universities, or the city centre.
The top three property types ranked by current tenant demand in Oxford are one to two-bed flats for young professionals and couples, two to three-bed terraced houses for small families and sharers, and HMOs for student and professional groups.
The primary demographic trend driving this demand pattern is Oxford's large population of hospital workers, researchers, and university staff who need affordable, well-located accommodation but often cannot afford to buy in the city.
Detached houses are currently underperforming in rental demand relative to their cost because tenants who can afford the high rents these properties command often choose to buy instead, leaving a smaller rental market for this segment.
What unit size has the best yield per m² in Oxford as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square metre in Oxford is typically 30 to 50 square metres, covering studios and efficient one-bedroom flats.
For this optimal unit size in Oxford, the typical gross rental yield per square metre works out to approximately £30 to £40 per m² per month ($38 to $51 or €35 to €47), compared to £15 to £25 per m² for larger family homes.
Smaller units achieve higher yield per square metre because rent doesn't scale linearly with size in Oxford, so a 40m² flat might rent for £1,300 while an 80m² house only fetches £1,800, giving the smaller unit a significant efficiency advantage.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Oxford.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the UK versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What costs cut my net yield in Oxford as of 2026?
What are typical property taxes and recurring local fees in Oxford as of 2026?
As of early 2026, the annual property tax for a typical rental property in Oxford is the Council Tax, which for a Band D property in unparished areas runs to approximately £2,550 per year ($3,240 or €3,010), though tenants usually pay this during their tenancy.
Other recurring local fees landlords must budget for in Oxford include landlord licensing fees in certain areas, safety certification renewals like gas and electrical checks costing around £150 to £250 per year ($190 to $320 or €180 to €295), and potential HMO licence fees if applicable.
These taxes and fees typically represent around 1% to 2% of gross rental income for standard lets where tenants pay Council Tax, but can rise to 10% to 15% during void periods or for HMOs where landlords cover more costs.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Oxford.
What insurance, maintenance, and annual repair costs should landlords budget in Oxford right now?
The estimated annual landlord insurance cost for a typical rental property in Oxford is approximately £230 to £300 per year ($290 to $380 or €270 to €355), though this varies significantly based on property type, tenant profile, and coverage level.
For maintenance and repairs, Oxford landlords should budget around 0.75% to 1.25% of property value annually, which on a £505,000 average Oxford property translates to roughly £3,800 to £6,300 per year ($4,800 to $8,000 or €4,500 to €7,400).
The type of repair expense that most commonly catches landlords off guard in Oxford specifically is boiler replacement and heating system repairs in the city's older Victorian and Edwardian housing stock, which can easily run to £2,000 to £4,000 when systems fail.
In total, Oxford landlords should realistically budget approximately £4,000 to £6,600 per year ($5,100 to $8,400 or €4,700 to €7,800) for the combined cost of insurance, routine maintenance, and a repair reserve.
Which utilities do landlords typically pay, and what do they cost in Oxford right now?
In standard Oxford long-lets, tenants typically pay all utilities including gas, electricity, water, and broadband, with landlords only covering these costs during void periods or for bills-included arrangements common in HMOs and student lets.
When landlords do cover utilities in Oxford, the estimated monthly cost is approximately £145 per month ($185 or €170) based on the Ofgem price cap of around £1,758 per year for a typical household, though HMOs with multiple tenants will run higher.
What does full-service property management cost, including leasing, in Oxford as of 2026?
As of early 2026, the typical monthly property management fee for full-service management in Oxford ranges from 8% to 15% of monthly rent, which on the average Oxford rent of £1,915 translates to roughly £150 to £290 per month ($190 to $370 or €180 to €340).
On top of ongoing management, the typical tenant-placement or leasing fee in Oxford is usually equivalent to around half to one month's rent, so approximately £960 to £1,915 ($1,220 to $2,430 or €1,130 to €2,260) each time a new tenant is found.
What's a realistic vacancy buffer in Oxford as of 2026?
As of early 2026, Oxford landlords should set aside approximately 3% to 6% of annual rental income as a vacancy buffer, with more cautious investors budgeting up to 8% if they anticipate refurbishment between tenancies.
This translates to a typical experience of around 2 to 3 weeks vacant per year in Oxford for a well-priced, well-maintained property, thanks to the city's persistent demand from universities, hospitals, and research employers.
Buying real estate in Oxford can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Oxford, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Office for National Statistics - Housing prices in Oxford | It's the UK's official statistics office publishing Oxford-level prices and rents using national datasets. | We used the Oxford average price and monthly rent as the backbone for all yield calculations. We also used rent and price splits by property type and bedroom count to explain why yields differ. |
| ONS - Private rent and house prices bulletin | It's the official monthly release explaining methods behind UK rent and house price indices. | We used it to check that Oxford's local rent changes fit the broader national context. We also referenced it to explain what the rent index captures. |
| HM Land Registry - UK House Price Index | It's the official transaction-based index for prices maintained by Land Registry and ONS. | We used it to anchor price as transaction-based, not just listing-based. We referenced it to support the credibility of the ONS Oxford price figure. |
| Rightmove - Rental Price Tracker | Rightmove is the UK's largest property portal with transparent, regularly published rental market indicators. | We used it as a market temperature check on supply and demand and advertised rent trends. We also used it to support our vacancy and void assumptions. |
| Zoopla - Rental Market Report | Zoopla is another major UK portal with widely quoted reports and consistent methodology. | We used it to triangulate demand and supply conditions and letting speed nationally. We referenced it to avoid relying on a single portal narrative. |
| HomeLet - Rental Index | It's a long-running UK rental index used by media and industry, focused on new tenancies. | We used it to cross-check that the direction of rent growth we see in ONS isn't an outlier. We treated it as a third-party market pulse alongside other portals. |
| Oxford City Council - Council Tax charges | It's the local authority's official page showing actual tax liabilities by band and area. | We used it to estimate a key landlord cost during voids and for bills-included lets. We treated it as a concrete input to net yield assumptions. |
| Ofgem - Energy price cap | Ofgem is the UK energy regulator and this is the primary source for capped tariff levels. | We used it to estimate utility costs for bills-included strategies common in HMOs and student lets. We grounded utility budgeting in an official benchmark. |
| Which? - Energy price cap explanation | Which? is a widely trusted UK consumer organisation that clearly cites Ofgem. | We used it as a plain-English cross-check on Ofgem's cap number. We referenced it to keep the article low-cognitive-load for readers. |
| NRLA - The unseen expenses of being a landlord | The NRLA is the UK's leading landlord association, reflecting real landlord cost structures. | We used it to bound realistic ranges for letting and management fees and reletting costs. We relied on it to avoid best-case net yield assumptions. |
| GOV.UK - Leasehold service charges | It's the official government explainer of what service charges are and how they work. | We used it to explain why flats can have materially lower net yields than gross yields suggest. We treated it as the definitional source for service-charge logic. |
| Hamptons - Service Charge Index 2024 | Hamptons is a major UK agency with a transparent index frequently cited in national media. | We used it to anchor an evidence-based order of magnitude for annual service charges on flats. We stress-tested Oxford flat net yields with this data. |
| Network Rail - Oxfordshire Connect | It's the official infrastructure owner giving project milestones that affect accessibility. | We used it to identify micro-areas likely to benefit from improved connectivity. We tied upcoming projects to real, dated milestones for credibility. |
| Oxford City Council - Oxpens planning approval | It's Oxford's official announcement of a major regeneration approval. | We used it to name specific zones where change is concrete. We framed rent uplift catalysts beyond generic growth claims. |
| University of Oxford - Warneford Park medical campus | It's a primary institutional source tied to Oxford's largest demand engines. | We used it to support renter demand logic around Headington hospitals and research growth. We connected yield hotspots to employment anchors. |
| Alan Boswell Group - Landlord insurance statistics | It's an industry-facing compilation of UK landlord insurance cost data. | We used it to anchor insurance cost as a realistic midpoint. We recognised wide dispersion but needed a credible starting range. |
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