How much to buy Kidlington?

June 11, 2018

“How much would it cost to buy all the properties in Kidlington?”

 

This fascinating question was posed by the 11-year-old son of one of my Kidlington landlords during a portfolio review meeting (doesn’t that seem an age away now!).

 

I thought to myself that, over the weekend, I would sit down and calculate what the total value of all the properties in Kidlington is … and, just for fun, work out how much they have gone up in value since his son was born back in the autumn of 2006.


In the last 11 years, since the autumn of 2006, the total value of Kidlington property has increased by 41.77% or £2.77 billion to a total of £3.92 billion. Interesting, when you consider the FTSE100 has only risen by 31.1% and inflation (i.e. the UK Retail Price Index) rose by 37% during the same 11 years.


Then I delved deeper into the numbers; the average price currently being paid by Kidlington households stands at £405,884.… but you know me, I wasn’t going to stop there, so I split the property market down into individual property types in Kidlington; the average numbers come out like this ..

 

 


… yet it got even more fascinating when I multiplied the total number of each type of property by the average value. Even though detached houses are so expensive, when you compare them with the much cheaper semi-detached houses, you can quite clearly see detached properties are no match in terms of total pound note value to the semi-detached houses.

 

 


So, what does this all mean for Kidlington?  Well as we enter the unchartered waters pre and post Brexit, even though property values are already declining in certain parts of the property market, the outlook in Kidlington remains relatively good as over the last five years, the local property market was a lot more steady than areas such as central London’s.

Kidlington house values will remain resilient for several reasons. Firstly, demand for rental property remains strong with continued immigration and population growth.  Secondly, with 0.25 per cent interest rates, borrowing has never been so cheap and, finally, the simple lack of new house building in Kidlington over recent years (set to change in 2022) not keeping up with current demand, let alone eating into years and years of under investment – means only one thing – yes it might be a bumpy ride over the next 12 to 18 months but, in the medium term, given it's proximity to the railway station and Oxford, as far as I can see property ownership and property investment in Kidlington has always, and will always, ride out the storm.

 

 

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