The Homes Are Missing — But the Demand Isn’t
You can’t sell what hasn’t been built.
That’s the core challenge — and opportunity — for investors in Oxfordshire property. Demand is real. It's growing. But the supply side is stuck in neutral.
In this article, we’ll look at just how wide the housing gap really is, how affordability has become a barrier, and why that creates space for investors and developers to deliver real value — both financial and social.
1. Let’s Start With the Numbers: There’s a Big Shortfall
According to the Housing and Economic Needs Assessments (HENAs) for Oxfordshire:
- The region needs between 100,000 and 120,000 new homes by 2040.
- That’s over 5,000 homes per year just to keep up with projected growth.
- But in most recent years, delivery has fallen short — sometimes by 1,000–2,000 homes per year.
What this means for investors:
- More buyers than sellers
- More renters than landlords
- Higher competition for quality homes
It’s simple supply and demand — but in Oxfordshire, that imbalance has become structural, not seasonal.
2. Affordability: The Invisible Barrier That Keeps People Stuck
Let’s break it down.
- The average home in Oxford costs 10–12x the average salary.
- In some districts, like South Oxfordshire, it's even higher.
- That means even middle-income professionals can’t afford to buy.
So what do they do?
- Stay renting (and competing for limited stock)
- Move further out (adding pressure to commuter zones)
- Delay household formation (sharing homes longer)
Why this matters for investors:
- Rising rents due to competition
- Demand for smaller, more affordable units
- Pressure on quality, well-managed housing
You’re not just offering a roof — you’re offering access, dignity, and stability to people priced out of ownership.
3. Big Developers Are Missing the Mark
Large housebuilders tend to focus on:
- Large greenfield sites
- Standard 3–5 bed units
- Uniform developments
But that’s not where the deepest need sits.
The real gap? It’s in:
- 1–2 bed starter homes
- Refurbished infill properties
- Conversions and densification in existing urban areas
That’s OLD-Homes’ sweet spot. We focus on projects that fall between the cracks — too small for national builders, too complex for hands-off investors, but ideal for active local development teams.
4. Case Example: The Hidden Value of a Subdivided House
Imagine this:
- A 4-bed house in a commuter village sits slightly dated, with a large plot.
- OLD-Homes acquires it below market value.
- We secure planning to convert it into 2 x 2-bed flats + 1 studio garden unit.
The result:
- More units = more yield
- Product matches demand (young professionals, downsizers)
- Refurb uplift + planning gain = strong ROI
This is what we mean by unlocking latent value in existing housing stock — and addressing affordability without needing vast new developments.
5. The Human Side: Who Are We Really Building For?
Behind every statistic is a real person:
- A 28-year-old NHS physio and partner moving to Oxford from Newcastle that wants a place to enjoy their downtime together with space to connect with friends and family
- A teacher who wants to stay in her hometown but can’t buy within easy commuting time
- A recently divorced dad looking for a 1-bed near his kids while rebuilding financially stability as a policeman
- The care-home worker and her carpenter husband that moved to Oxfordshire from Italy to build a new life in their twenties
These aren’t speculative renters — they’re essential workers, professionals, and community anchors.
Delivering the kind of housing they need is not just good ethics — it’s good economics.
6. The Investment Logic — In Plain English
Let’s simplify:
- Say a town needs 400 new homes a year but only delivers 250.
- That’s a shortfall of 150 homes — every single year.
- If you’re delivering just 5 homes that truly meet the gap (e.g. smaller, affordable units), you’re part of the solution.
And in doing so:
- You face less competition
- You benefit from pricing tailwinds
- You support real, grounded, resilient demand
This isn’t chasing the next hot postcode. It’s meeting today’s need, right where it is.
How OLD-Homes Invests Into the Gap
Our model focuses on:
- Smart refurbishments: faster to market, less planning risk
- Infill and conversions: better use of existing land
- Planning gain: value uplift by improving use and design
We target:
- Sites overlooked by big developers
- Locations with proven demand and limited stock
- Projects that can deliver returns and improve local supply
In short — we make sure your capital doesn’t just sit in bricks. It unlocks housing. It generates yield. It closes the gap.
Call to Action
If you’re ready to invest where need meets opportunity, we’d love to show you what we’re working on.
Download our latest project snapshot or join our investor briefing call to see how our team is making affordability investable.
Next in the Series:
Case Studies & Stories: Places, Projects & People in Oxfordshire — where we bring the theory to life with real examples and real returns.