Oxford Housing Market Update:
House Prices, Rents and Mortgage Rates
in 2026

Oxford remains a high-priced market by South East standards, but the latest official local figures show house prices slightly lower year-on-year while rents are still rising sharply. For mortgage borrowers, the bigger story is that fixed rates have eased versus the recent peak, and the next leg for pricing depends on what happens to Bank of England Bank Rate expectations (often reflected in swap markets), plus how aggressively lenders compete for home movers and remortgagers.

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

Oxford House Prices And Market Signals

The Office for National Statistics local housing page puts the average Oxford house price at £505,000 in October 2025 (provisional), down 2.0% from £515,000 in October 2024 (revised). Oxford can behave differently street-by-street, but this kind of small annual fall is typical of a market where affordability has been stretched by higher mortgage rates.

First-time buyers in Oxford paid £433,000 on average in October 2025 (provisional), down 2.0% from a year earlier, while “mortgage buyers” paid £499,000 on average, down 1.7%. These “buyer type” numbers can be more useful than a headline average when you’re estimating a realistic deposit and loan size.

Oxford’s price gap by property type remains wide. The same Office for National Statistics local dataset shows average prices (October 2025, provisional) of £1,018,000 for detached homes, £622,000 for semi-detached, £493,000 for terraced, and £311,000 for flats and maisonettes. In mortgage terms, this can translate into very different loan-to-value options and very different lender appetites (especially for flats with higher service charges or shorter leases).

A useful context check: the Office for National Statistics page shows the South East average house price at £384,000 in October 2025, compared with £270,000 across the UK. That helps explain why a “normal” deposit percentage can still mean a large cash sum in Oxford.

Oxford Rents And The Buy-To-Let Backdrop

Rents are still moving quickly in Oxford. The Office for National Statistics local snapshot shows average monthly private rent at £1,915 in November 2025, up 7.4% from £1,783 in November 2024. This annual increase was higher than the South East rise shown on the same page (4.0%).

By bedroom count, the same dataset shows average rents in November 2025 of £1,316 for one bedroom, £1,623 for two, £1,978 for three, and £2,805 for four or more bedrooms. If you’re weighing “rent versus buy”, these figures help frame the cost of waiting, while remembering that ownership also brings maintenance and insurance costs (and service charges for many flats).

By property type, the Office for National Statistics page shows average rents in November 2025 of £1,519 for flats/maisonettes, £1,974 for terraced, £2,132 for semi-detached and £2,532 for detached homes. For buy-to-let landlords, strong rents can help, but the gap between rent growth and mortgage costs still matters at remortgage time.

For buy-to-let borrowing in particular, lenders typically assess affordability using a rent-to-interest “cover” test and a stressed interest rate. So even in a high-rent city like Oxford, borrowing capacity can be capped if rates remain elevated, if the property has high service charges, or if a borrower already has multiple mortgages.

Bank Of England, Inflation And What Moves Mortgage Pricing

Mortgage pricing is not driven by Bank Rate alone. Many fixed-rate mortgages are priced off lenders’ funding costs, which are influenced by market expectations for future interest rates (often visible in swap markets) as well as competition and risk appetite.

The Bank of England’s Monetary Policy Committee voted 5–4 to cut Bank Rate by 0.25 percentage points to 3.75% at its meeting ending on 17 December 2025. Decisions like this matter because they shape expectations for where rates may go next, which can feed into fixed-rate mortgage pricing even before any further rate change happens.

Inflation is a key driver of those expectations. The Office for National Statistics reported CPI inflation of 3.2% in the 12 months to November 2025, down from 3.6% in the 12 months to October 2025. If inflation proves “stickier” than expected, funding costs can rise and mortgage rates can follow; if inflation continues to cool, markets may price in further gradual reductions.

Mortgage approvals and refinancing activity can also indicate how the market is coping with affordability. Bank of England data for November 2025 shows net mortgage approvals for house purchase fell by 500 to 64,500, while approvals for remortgaging (with a different lender) rose by 3,200 to 36,600. A higher refinancing count can be consistent with more borrowers shopping around as deals end, even if new purchase demand is more cautious.

Where Mortgage Rates And Remortgage Rates Sit In January 2026

Rightmove’s daily snapshot (using Podium data across most of the market) shows average rates of 4.29% for a two-year fixed and 4.38% for a five-year fixed, updated 10 January 2026. It also lists lowest headline rates of 3.47% (two-year) and 3.69% (five-year), which typically assume stronger borrower profiles, lower loan-to-value and product fees. Rates can change quickly and are subject to eligibility and affordability checks.

For borrowers with smaller deposits, Rightmove’s same page shows higher average fixed rates at 90% and 95% loan-to-value than at 60% loan-to-value. In practice, that means the “deposit hurdle” in Oxford affects not just how much you can borrow, but also the price of borrowing.

Remortgagers are often comparing two paths: switching to a new lender or taking a product transfer with an existing lender. Rightmove’s remortgage rates page (updated 10 January 2026) shows an average remortgage rate of 4.33% for both two-year and five-year fixed, with lowest remortgage rates shown at 3.66% (two-year) and 3.75% (five-year). It also shows average product transfer rates separately. This is market-level information, but it highlights why some borrowers still shop around even when a product transfer looks convenient.

What This Could Mean For Oxford Buyers And First-Time Buyers

In Oxford, even a small change in mortgage rates can materially change monthly payments because property values are high. For buyers, the practical “market” often becomes: how many properties are realistically affordable at today’s rates, and how sensitive is your budget to a different rate at the point you complete?

Choosing between a two-year and five-year fixed rate is usually about certainty versus flexibility, not guessing the exact path of interest rates. A shorter fix can suit buyers who expect income growth, plan to move again, or want the option to refinance sooner if pricing improves. A longer fix can suit buyers who value stable payments and want to reduce the risk of a near-term refinancing shock. There is no guaranteed “right” choice, because the future path of rates is uncertain.

Stamp Duty Land Tax is a major up-front cost in England and Northern Ireland and can influence Oxford decisions, especially for buyers near threshold points or those keeping an existing property. Government guidance is the safest place to check rates and reliefs for your circumstances.

If you are eligible, a Lifetime ISA may help with deposit building. Government guidance explains who can open one, contribution limits and the 25% bonus rules, along with withdrawal conditions. It is important to understand the rules before relying on it for a specific purchase timeline.

Shared ownership can widen options where full ownership is out of reach. Government guidance explains how shared ownership works, costs (including rent and service charges), and the “staircasing” process to buy more shares later. It can be useful, but borrowers should model total monthly costs carefully and consider resale and lease implications.

For flats, lenders and valuers may focus on lease length, service charges and building documentation. Where relevant, the Royal Institution of Chartered Surveyors explains the EWS1 process (used in some cases to evidence external wall system assessments) and why documentation requests can affect sale and remortgage timeframes.

What This Could Mean For Oxford Homeowners And Remortgagers

For homeowners whose fixed rate ends in 2026, timing can matter as much as rate direction. Many borrowers review options well ahead of the end date to reduce the risk of falling onto a higher standard variable rate. Whether you choose a product transfer or a full remortgage, it’s important to consider fees, early repayment charges and any change to the mortgage term (which can change total interest paid over time).

If you are considering overpayments, check your lender’s rules. Overpayments can reduce the outstanding balance and interest over time, but lenders often limit penalty-free overpayments during a fixed period. Any decision should be based on your cashflow resilience and other priorities (emergency savings, other debts), rather than assuming that rates will fall or rise.

For borrowers with non-standard income (for example self-employed applicants, contractors or seafarers with rotational pay), the main focus is typically how income is evidenced and assessed. A qualified mortgage adviser can help you understand what documents different lenders may accept and how affordability might be tested, without relying on guesswork.

Buy-To-Let, Tenancy Reform And Energy Rules

For landlords in Oxford, mortgage affordability and regulation are moving parts alongside rent levels. If a remortgage is due, it is usually sensible to model a range of outcomes: rent flatlining for a period, a void period, and interest rates not falling as quickly as hoped. That can help avoid over-reliance on optimistic assumptions.

The Renters’ Rights Act received Royal Assent on 27 October 2025. Government guidance summarises the measures and the direction of travel for tenancy reform in England, and there is further implementation detail to follow.

Shelter’s summary for tenants states that from 1 May 2026, landlords cannot give a section 21 notice, meaning most “no fault” evictions will end and landlords will need a reason to evict under the new framework. Landlords should follow official updates and ensure they understand how the new rules apply to their tenancy types as measures come into force.

Energy standards can also affect landlord costs and timelines. Government guidance on the domestic private rented sector minimum energy efficiency standard explains current requirements (generally EPC band E or above, unless a valid exemption applies). Any future changes would be separate, but the current rules already matter for many properties.

If you need to check a property’s Energy Performance Certificate, the government “Find an energy certificate” service can show existing certificates for England, Wales and Northern Ireland.

For homeowners (and some landlords) considering low-carbon heating, the Boiler Upgrade Scheme provides grants toward eligible heat pumps and biomass boilers in England and Wales, subject to scheme rules and property suitability.

Key Numbers To Watch

Oxford snapshot (official local data)

• Average Oxford house price: £505,000 (October 2025, provisional)

• First-time buyer average price: £433,000 (October 2025, provisional)

• Mortgage buyer average price: £499,000 (October 2025, provisional)

• Average monthly private rent: £1,915 (November 2025)

UK mortgage pricing and demand signals

• Bank Rate: 3.75% (decision announced 17 December 2025)

• CPI inflation: 3.2% (12 months to November 2025)

• Net mortgage approvals for house purchase: 64,500 (November 2025)

• Approvals for remortgaging with a different lender: 36,600 (November 2025)

• Average two-year fixed: 4.29% (updated 10 January 2026)

• Average five-year fixed: 4.38% (updated 10 January 2026)

• Average remortgage rate: 4.33% (two-year) and 4.33% (five-year), updated 10 January 2026

Figures as of 10 January 2026 London, unless stated otherwise.

The information provided in this article is for general guidance only and does not constitute personal or regulated financial advice. If you’d like to understand what these moves could mean for you, speak to Mortgage One, we can explain your options and timings based on your specific circumstances.

Some Buy to Let mortgages are not regulated by the Financial Conduct Authority.

FAQs

1. Are Oxford house prices rising or falling right now?
The latest Office for National Statistics local snapshot shows Oxford’s average house price at £505,000 in October 2025 (provisional), down 2.0% from October 2024. Local series can be volatile month to month, so many people focus on year-on-year direction rather than a single month.

2. What is the typical first-time buyer price in Oxford?
The Office for National Statistics local page shows first-time buyers paid £433,000 on average in Oxford in October 2025 (provisional). This can help benchmark deposit size and expected borrowing needs.

3. What mortgage rates are borrowers seeing in January 2026?
Rightmove’s market snapshot updated 10 January 2026 shows average rates of 4.29% for a two-year fixed and 4.38% for a five-year fixed. The rate you may receive depends on deposit size, credit profile, fees, affordability and the property.

4. Why can fixed mortgage rates change even when Bank Rate does not?
Fixed rates are influenced by lenders’ funding costs and market expectations for future rates, often reflected in swap markets, not just Bank Rate. Competition between lenders can also push pricing up or down.

5. When should I start looking at a remortgage if my deal ends in 2026?
Many borrowers review options months in advance so they can line up a new deal and reduce the risk of reverting to a higher standard variable rate. Timing depends on early repayment charges, lender timeframes and your specific end date.

6. What costs should Oxford buyers budget for beyond the deposit?
Costs can include Stamp Duty Land Tax (depending on price and eligibility for relief), conveyancing, surveys, mortgage fees and moving costs. Flats may also bring service charges and ground rent.

7. What changes might affect Oxford landlords in 2026?
Tenancy reform under the Renters’ Rights Act is expected to change how tenancies and possession work, and Shelter states section 21 notices cannot be used from 1 May 2026. Landlords also need to comply with minimum energy efficiency standards unless exempt.