Rightmove’s February House Price Index landed this week with a striking headline: property prices have effectively stood still this month. Nevertheless, thanks to the unusually strong uplift seen in January, we are still witnessing the strongest start to a year for asking prices since 2020.
This is a national picture, but it mirrors what we’re seeing on the ground here in Oxford.
In property market terms, Oxford remains in robust health. The market here – both residential sales and lettings – is demonstrating resilience amid a gradual national recovery, with early indicators pointing to stabilisation after some challenging months.
Rightmove’s data suggests buyers are optimistic but still a little cautious, with prices shooting up in January but flatlining this month. That said, sellers are holding their nerve – not dropping prices.
Locally, that same theme is playing out. Fewer dramatic swings, more measured decision-making, and a market that feels steadier than it did through much of 2025.
Local Market Performance
Recent data from the Office for National Statistics (ONS), compiled directly from Land Registry results, shows Oxford's average house price standing at £481,000 as of December 2025 (ONS data always lags by two or three months).
This is around the same value that properties had in December 2024 – which means no discernible price growth in 12 months in Oxford. This is something which, at face value, might give some local homeowners cause for worry.
Nevertheless, this performance mirrors the broader affordability pressures that have characterised the market since mortgage rates climbed sharply in 2023.
First-time buyers in Oxford – the type of buyer that we need to kickstart chain movements – are now paying an average of £412,000, again in line with first time purchasers in December 2024. Meanwhile, mortgage-backed purchases in general average £475,000.
That said, the market continues to show significant variation by property type. Detached homes are commanding an average of £972,000, whilst semi-detached properties are fetching £591,000, terraced houses £479,000, and flats £295,000.
Flats experienced the steepest correction during 2025, falling approximately 5%, whilst terraced houses proved more resilient with only minor price reductions.
One interesting trend we picked up on this month is that up to 31% of first-time buyers are delaying their purchases until they have a 25% deposit saved, per an article in The Intermediary, citing Moneyfacts data. A 25% deposit for first-time buyers; that equates to around £103,000 locally - not a small amount of money to save, and something that will usually take some time.
As such, it means there is a smaller number of first-time buyers available compared to years past, putting pressure on sellers to reduce prices to appeal to that limited pool, with that trend then repeating up the chain as a domino effect.
A flat-lining in value might concern some Oxford homeowners, but taken in context of wider South East performance, there’s reason to feel optimistic.
Pockets of London have seen falls of 15% and more over the past 12 months, although general drops are not so extreme, with much of the southern regions sitting around 5% drops.
Compared to the picture across the south, Oxford has held up well, and as national prices begin to improve, our local market is expected to recover steadily through 2026.
Local Success Stories
Despite the broader statistics, individual properties continue to outperform.
We recently exchanged on a property in Binswood Avenue, which we put up for sale in November, and on which we achieved £50,000 over the asking price.
This was after just two days of viewings, which saw twenty buyers through the door and six competing bids pushing the sale price from the £750,000 headline price, to an £800,000 sale – completing just two months later.
We know that presentation and marketing matter, and we certainly do put the effort in when it comes to these things.
Nevertheless, it’s also noticeable how buyer attitudes have shifted in this early New Year period compared with the hesitation that defined much of last year.
In these first three weeks of February alone, we’ve already had fourteen properties go under offer.
If you’re considering selling, this feels like a genuinely promising moment.
Supply and Demand Dynamics
Oxford’s fundamental challenge remains its chronic housing shortage.
Green Belt restrictions and tight planning controls limit development here, in turn limiting supply, and that prevents significant price drops even when demand softens. This structural undersupply, combined with strong employment from the university sector and the city’s science and tech clusters, underpins long-term stability.
The rental market tells a similar story. Average monthly rents rose 6.5% last year, driven by sustained demand from students and professionals competing for limited stock.
The average monthly rent in Oxford now stands at £1,805 per month according to the ONS.
Looking Forward
Rightmove’s February data points to a market finding its footing – steep asking price rises in January, and a bit of calmness this month to settle things down.
Locally, we’re seeing something similar in terms of sentiment, even if the asking price pattern hasn’t quite matched here month by month.
Relatively stable mortgage rates, pent-up demand from postponed movers, inflation just reported to have come down to its lowest level in months, dropping from 3.4% in December to now sit at 3% - and combined with all this, Oxford’s enduring supply constraints.
These things all combine to support a forecast of gradual improvement – albeit probably not dramatic swings.
For sellers, realistic pricing remains essential. For buyers, affordability is improving, but thoughtful decision-making still matters.
The outlook for Oxford’s property market in 2026 is one of measured optimism: steady growth, improving confidence, and fundamentals that remain amongst the strongest in the country.
If you’re considering a move and would like honest advice on where your property sits within today’s market, please get in touch for a no-obligation chat.
