I think a friend of mine used to live in that building, actually. It isn't brilliant, but it isn't awful either, and from what I've heard about private accommodation in Oxford, you could probably do a lot worse than that... I'd take it if I were you.
By the way, Banbury Road isn't really as distant as you seem to think. If you're a fast walker, you can actually cover the distance between Hilda's and Hugh's in a little over 30 minutes on foot. If you don't want to walk, there are several bus stops along Banbury Road, with buses leaving every few minutes, so you only really have to go to the centre of town and then take a bus. Or failing that, just get a bike and you'll cut the journey down to about 10 minutes.