In it to win it: Cambridge house prices have overtaken Oxford for the first time in 18 years

The winner of the Oxford-Cambridge property race has been decided. 
1/6

The Oxford-Cambridge boat race 2018 may have had a convincing winner – but it seems that Cambridge, who traditionally wear a light blue rowing kit, has stolen a march on its dark blue rival in the property stakes, too.

At £527,000, average house prices in Cambridge were higher than Oxford (average £521,000) this year for the first time since 2000, according to new research by Hamptons International.

The estate agent says this is partly to do with high levels of new development in Cambridge, where the proportion of sales that are new build is twice that of Oxford.

“You pay a premium to buy a new build and the builders benefit from the government Help to Buy scheme. It enables them to get a bit more than they would,” says Phil Evans, branch manager at Tucker Gardener.

“Most of the land in Cambridge is owned by the university or colleges and they release it piecemeal so it becomes quite valuable.”

By contrast, new building in Oxford is hampered by a lack of available land, in no small part a result of the city’s geographical location surrounded by a flood plain, according to Charles Wellbelove, area director of Oxford in Hamptons International.

Cambridge property prices have also been boosted by an influx of new businesses in the city, the expansion of the Science Park and the Biomedical Campus, says Evans.

Companies including AstraZeneca, which moved to the city in 2016, have seen thousands of new workers on full relocation packages – including healthy housing budgets – arrive in Cambridge.

“We’ve seen properties selling for vast amounts over the guide price,” says Evans. “One sold for £125,000 over guide, which is unusual for Cambridge.”

Cambridge university is also boosting staff recruitment and retention with a generous equity loan scheme to help academics with the rising cost of housing in the city, he says.

In contrast to the pull factors drawing people to Cambridge, demand for homes in Oxford is relies on the push factor of London’s high house prices.

“In Oxford we’re very reliant on the London property market, we see a lot of migration from south-west London because we’ve got some really good schools,” says Wellbelove.

“Over the past years we’ve had multiple bids from London leavers with very good budgets with many properties achieving well in excess of the guide price.

“Now, we’re still getting strong prices and strong sales but we’re not seeing the feeding frenzy of recent years as the London market has softened.”