Renting vs Buying in Oxford: What’s the Best Option in 2025?

The decision between renting and buying a home is one of the biggest financial choices people face, especially in a high-demand area like Oxford. With property prices still above the national average and the rental market remaining competitive, many people in and around Oxfordshire are wondering whether it makes more sense to buy a home or keep renting in 2025.

As mortgage brokers based in Oxford, we speak to first-time buyers, renters, and investors every week who are trying to decide which route to take. In this post, we’ll walk through the key differences between renting and buying, the current market conditions, and who each option might suit best.

How Much Does It Cost to Rent in Oxford?

According to recent data from Zoopla and Rightmove, the average monthly rent for a one-bedroom flat in Oxford is around £1,300. A two-bedroom property typically rents for between £1,600 and £1,900 per month. For many renters, particularly professionals and young families, rent takes up a significant portion of monthly income.

It’s also worth noting that rental prices in Oxford have risen sharply since 2020 and continue to climb due to low supply and high demand.

How Much Does It Cost to Buy in Oxford?

As of mid-2025, the average property price in Oxford is around £465,000. A typical two-bedroom flat might cost anywhere from £300,000 to £400,000, depending on the area. This makes Oxford one of the most expensive places to buy outside London.

For first-time buyers, a 10 per cent deposit on a £350,000 flat would be £35,000. Add legal fees, mortgage fees, valuation costs, and possibly stamp duty, and the total upfront cost can be significant.

However, with current mortgage rates stabilising between 4 and 5 per cent, many buyers are finding that monthly repayments can be close to or even lower than local rents, especially with longer-term fixed rates providing stability.

Advantages of Renting in Oxford

• Flexibility – Easier to move if your job, relationship or lifestyle changes

• No maintenance costs – The landlord is responsible for repairs

• Lower upfront costs – No need for a deposit as large as for buying

• Access to better areas – You may be able to afford to rent in places where buying is out of reach

Advantages of Buying in Oxford

• Building equity – Every payment goes towards owning more of your home

• Fixed monthly payments – Especially with a fixed-rate mortgage

• Greater security – You’re not at the mercy of rent increases or landlords selling up

• Freedom to renovate – Make your house your home without needing permission

Who Should Keep Renting?

Renting might be the right choice if:

• You plan to move within the next few years

• You don’t have a large deposit saved

• Your income is variable, or you're self-employed without stable accounts

• You prefer the flexibility of being able to move quickly

Who Should Consider Buying?

Buying might suit you better if:

• You plan to stay in Oxfordshire for at least 5 years

• You have a deposit saved and a stable income

• You’re tired of rent increases and want to put money into your own property

• You’ve found a home you can afford and love

A Third Option: Buying in a Nearby Area

For many people living in Oxford, buying within the city may be out of reach. That’s why we often help clients explore nearby areas like Bicester, Banbury, Kidlington or even further afield, where homes are more affordable but still within commuting distance.

This can be a smart way to get on the ladder and start building equity without being priced out completely. We can also help you understand which areas have the best schools, transport links, or investment potential.

How Drummonds Finance Group Can Help

Whether you’re thinking of buying your first home or staying in the rental market a little longer, we’re here to help you understand your options. We’re independent, local, and experienced, working across Oxford and the whole UK.

We can:

• Tell you how much you could borrow and what your monthly payments might be

• Show you the best mortgage deals from across the market

• Help you get an Agreement in Principle to strengthen your position with estate agents

• Talk through your long-term plans and whether buying is realistic for you right now

Final Thoughts

There’s no one-size-fits-all answer. Renting offers flexibility, while buying offers long-term security and investment. The right path depends on your finances, lifestyle and goals and in Oxford, that balance can be particularly tricky to manage.

If you’re unsure what to do next, get in touch with us today. Whether it’s just a chat or the start of a complete mortgage application, we’re here to guide you.

Visit our First Time Buyer page, Remortgage page, or Contact Us to start exploring your options.