Average Rent Cambridge UK vs Average Yield: What’s the Real Return?

Looking Beyond the Monthly Rent

Many landlords entering the Cambridge market focus on securing the highest possible rent, but monthly income alone doesn’t tell the whole story. The true measure of property profitability is yield — the percentage return you make on your investment after factoring in costs. Understanding the relationship between average rent Cambridge UK and rental yield can help landlords make smarter decisions and improve returns.

Average Rent in Cambridge by Property Type (2025)

In 2025, studios in Cambridge typically rent for £1,000–£1,200 per month, while one-bedroom flats achieve around £1,250–£1,500. Two-bedroom properties average between £1,600–£1,900, with larger HMOs (Houses in Multiple Occupation) often generating even higher gross rents due to multiple tenants contributing. According to market data, rents have grown steadily year-on-year, driven by sustained demand from students, professionals, and international residents.

How to Calculate Your Rental Yield

Gross yield is calculated by taking the annual rent, dividing it by the property’s purchase price, and multiplying by 100. Net yield takes operating expenses into account — including maintenance, management fees, insurance, and void periods — providing a more accurate picture of profitability.

In Cambridge, expenses such as higher council tax bands, competitive maintenance rates, and compliance costs can have a notable impact on net yield. Factoring these in is essential for realistic return calculations.

Which Cambridge Areas Offer the Best Yield?

Properties in the city centre often command the highest rents but can have lower yields due to higher purchase prices. Suburban areas and student-heavy neighbourhoods, while achieving slightly lower rents, can deliver stronger yields thanks to lower acquisition costs and consistent demand. Professional tenant areas may offer more stable, long-term income, while student areas can provide higher turnover but also higher overall gross rent potential.

Maximising Yield Without Cutting Corners

Strategic rent reviews aligned with Cambridge’s rental trends can help maintain competitive pricing without deterring quality tenants. For landlords open to flexible arrangements, incorporating short-term lets during peak demand periods, such as graduation season or summer tourism, can boost annual returns significantly.

Cambridge Stays Case Study: Turning 5% Yield into 8%

One landlord approached Cambridge Stays with a property generating a 5% net yield. Through a combination of targeted rent adjustments, reduced void periods, and the introduction of short-term lets during high-demand months, the yield increased to 8% within a year. The landlord maintained strong tenant satisfaction and saw no drop in occupancy.

Ready to Find Out Your True Yield?

Cambridge Stays offers a free Cambridge Yield Assessment to help landlords identify opportunities for improving their returns. Whether you own one property or a portfolio, our expert strategies can help you maximise profitability.

Book Your Portfolio Consultation today and start unlocking higher returns.