Oxford's house prices rising faster than entire South East

Fears have been raised that young people and the city’s homeless population will suffer as the housing market becomes increasingly “out of reach”.

Oxford’s house prices have grown by 6.8 per cent over the last year up to August, a stark contrast to the South East as a whole which has seen a fall of 0.6 per cent.

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Costs have also risen more than in surrounding districts, with prices up by 4.4 per cent in South Oxfordshire and 1 per cent in West Oxfordshire and down by 0.7 per cent in Cherwell.

It compares to the UK average of a 0.2 per cent increase.

Oxford city councillor Chris Smowton said the Land Registry figures, which were published last week, showed the council needed to prioritise housing over employment sites.

The Liberal Democrat group leader said: “Oxford's housing costs are soaring as more and more people are attracted to the city, and drive prices up through competition for scarce space.

“Most directly that means people like nurses and teachers often can't afford to live here, and are obliged to commute from further afield, to their detriment and that of existing residents.

“It also indirectly drives up social housing wait lists because less people can afford to rent privately.

"We have to get on top of the situation by restoring the balance of supply and demand.”

Mr Smowton called for large-scale ongoing housing developments, such as Oxpens and Oxford North, to be “heavier on housing and lighter on new employment.”

Design images of the planned Oxpens development near Oxford rail station (Image: Image: OxWED)

But the council has long argued that too much housing in the Oxpens development, near Oxford rail station, would only fix London’s housing crisis by attracting too many commuters.

The council has not allocated any new economic sites in its Local Plan 2024, a document which identifies where more than 9,600 new homes will be built over the next 17 years.

The plan will also encourage the conversion of poorly performing or poorly located employment sites to housing and protect the existing housing stock “as much as possible”.

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It will continue to limit student accommodation to the city centre, district centres like Cowley Road, Summertown and Headington, and land adjacent to existing campuses.

However, the plan will lower the affordable housing requirements of new developments.

The council claimed that developers would be discouraged from building in Oxford if this change was not made.

The average house cost in Oxford is already significantly greater than in the rest of the South East.

Prospective homeowners can expect to pay more than £500,000 for a property in the city, while the average price across the region is less than £400,000.

Natalie Petryszyn of the charity Oxfordshire Youth said the high prices were having “a huge impact on available options” and burdening young people “financially and emotionally.”

She said: “Increased rent and deposits are becoming ever so more out of reach for this age group of young people…

“It will ultimately result in some young people considering alternative options to move out of Oxford, with the only option of resettling in areas they do not know and away from family and friends.”

Fears have also been raised for the mental health of young people facing a daunting housing market.

Chris Buchanan of mental health charity Oxfordshire Mind said the “financial stress and pressure” of Oxford’s housing costs was causing “stress, anxiety and depression” for some young people.

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“Young people are put under pressure to try and secure a home, creating a sense of hopelessness and instability if this is beyond their financial means,” he said.

“People may fear that they will never be able to afford a home, leading to uncertainty, anxiety, and a lack of control over one's future.

“Younger generations may feel they cannot achieve the same level of financial stability or homeownership as their parents, leading to feelings of inadequacy or a sense of failure.”

A charity has warned that homeless people will suffer from the lack of available housing in Oxford

Homeless people will also suffer from the lack of available housing, warned Yvonne Pinner, project director of Oxfordshire Homeless Movement.

She said: “The homelessness sector has been struggling for some time to find affordable and suitable move-on accommodation for people who have worked hard to get their lives back on track and are ready to move out of supported accommodation and into long-term housing.

“Any increases in house prices will just serve to compound this problem.”

But the council’s planning chief Louise Upton insisted the new local plan would help “tackle the housing crisis."

"The Oxford Local Plan 2040 aims to find the right balance to help us tackle the housing crisis and climate emergency, support our communities and residents, and make Oxford’s successful economy work for all residents,” she said.