The combination of high house prices, a thriving economy and thousands of postgraduate students means that demand from tenants is very strong in Oxford. Demand is mainly from UK tenants, who make up 81% of the total; Americans are the next largest group at only 4%, according to Savills dealbook data. The majority of renters work locally and are renting due to relocation, but a significant minority (35%) rent as their tenure of choice.

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^{Source: 2011 Census (output area data, building shapes for illustration only)}

Although the majority of undergraduate students live in purpose-built student housing, postgraduates and junior academic staff tend to rent privately. Outside academia, other major tenant groups include young professionals and NHS workers.

The strength of demand means that investing in the private rented sector (PRS) is attractive to both institutions and individuals. New homes, particularly well-located apartment schemes, are a popular product with investor buyers. But new supply of any form has been sorely lacking in Oxford, so landlords instead buy traditional family homes.

Large investors need scale to make their business model add up, either when buying existing stock or developing a purpose-built PRS scheme. Properties or sites that fit the criteria are few and far between in Oxford, but the depth of demand from tenants and landlords remains very robust.