Cambridge Rental Market Breakdown: Best Performing Areas for HMOs and ASTs

When it comes to maximising rental yields in Cambridge, postcode matters. Some areas deliver exceptional demand and higher returns—others, less so. Whether you’re an experienced landlord or just entering the Cambridge rental market in 2025, choosing the right neighbourhood for your investment is crucial. Here’s how the city breaks down for Houses in Multiple Occupation (HMOs) and Assured Shorthold Tenancies (ASTs).

HMO Hotspots: Mill Road, Romsey, East Chesterton

If you’re targeting HMO investment, proximity to transport, affordability, and dense student or young professional populations are key. Three areas consistently stand out:

• Mill Road: With its eclectic mix of independent shops, quick access to the train station, and high student density, Mill Road remains a top performer for HMO returns. Properties here benefit from large room sizes and easy conversion potential.

• Romsey: Technically part of the Mill Road area but worth separate mention, Romsey’s Victorian terraces offer ideal layouts for HMOs. Close to ARU and the Beehive Centre, it attracts both students and postgraduates.

• East Chesterton: Slightly more suburban but with excellent bus and cycling links to the city centre and Science Park, this area is gaining popularity among young professionals and international researchers.

For landlords focused on best areas for HMO investment, these zones combine stable demand with potential for above-average yields, particularly when properties are well-maintained and marketed with inclusive bills.

Strong AST Demand: Trumpington, Station Area, Newnham

For traditional lets under AST agreements, tenants often look for location, lifestyle, and convenience. In 2025, these three areas are leading the charge:

• Trumpington: With major new-build developments, proximity to the Biomedical Campus, and access to the guided busway, Trumpington is ideal for professionals and families alike. It offers strong rent levels with lower void periods.

• Station Area (CB1): High footfall, modern flats, and unparalleled access to London via the main train line make this area prime real estate. AST tenants include commuters, international professionals, and city workers.

• Newnham: Leafy, academic, and sought-after, Newnham attracts long-term tenants who value quiet, charm, and access to schools and colleges. It’s less about yield and more about stable tenancies and premium pricing.

If you're targeting top AST locations, these neighbourhoods combine consistent demand with tenant profiles suited to well-maintained, longer-term rentals.

Rent Price Ranges by Area and Property Type

Cambridge rental market 2025 data shows clear differences by postcode and property type:

• Mill Road HMOs: £650–£800 per room/month (inclusive)

• East Chesterton HMOs: £550–£700 per room/month

• Trumpington 2-bed flats: £1,400–£1,700/month

• CB1 1-bed apartments: £1,250–£1,600/month

• Newnham 3-bed houses: £2,000–£2,800/month

Prices fluctuate based on property condition, parking availability, and whether utilities are included. Cambridge letting agents with detailed market knowledge can advise on realistic pricing, but landlords who self-manage should monitor listings weekly.

How Cambridge Stays Helps Landlords Match Location to Strategy

At Cambridge Stays, we don’t just manage listings—we help you choose the right one in the first place. With deep knowledge of the Cambridge rental market 2025 landscape, we guide landlords through:

• Area-by-area yield comparisons

• Licensing requirements for HMOs

• Tenant demographic matching

• Rent review cycles based on neighbourhood trends

Whether you’re letting a flat in CB1 or considering a house share in Romsey, our team aligns your investment goals with the best performing areas for your chosen strategy. Our data-driven approach reduces vacancy and increases tenant satisfaction—because success starts with smart location targeting.

Investing or letting in 2025? Let local data lead the way.

The Cambridge market isn’t one-size-fits-all. Knowing which neighbourhoods perform best for HMOs or ASTs could be the difference between average and outstanding returns. Let Cambridge Stays help you make that call with confidence.