Cambridge Rental Market Trends: Choosing Between ASTs and Short Lets

The Cambridge rental market in 2025 is defined by opportunity—but also by choice. For landlords, the key question isn’t just how to rent, but how to rent smart. Should you go for steady income via an Assured Shorthold Tenancy (AST) or tap into high-turnover, potentially higher-yield short lets? Understanding the trends and regulations shaping each route can help you pick the most profitable—and sustainable—strategy for your property.

Latest Trends in Short-Term Letting in Cambridge

Short lets—Airbnb-style rentals that typically last from a few days to a few weeks—have remained popular in central Cambridge, especially with tourists, visiting academics, and business travellers. Proximity to colleges, train stations, and attractions boosts visibility and occupancy.

However, market saturation is increasing. While nightly rates remain strong during high seasons, off-peak months can bring prolonged vacancies. Local authorities have also begun cracking down on unlicensed short lets, with increasing pressure to align operations with planning laws.

If you’re considering short lets, it’s vital to:

• Track demand using platforms like AirDNA

• Monitor cleaning and turnover costs

• Stay compliant with insurance and tax rules

Demand and Growth for Long-Term (AST) Rentals

On the other hand, ASTs continue to be the foundation of Cambridge’s rental housing stock. Especially for professionals, families, and postgraduate students, a 6- or 12-month lease offers the security and routine many renters value.

Landlords benefit from:

• Consistent monthly income

• Lower management overheads

• Longer tenant relationships

In 2025, AST demand remains strong, particularly in areas slightly outside the tourist core—think Chesterton, Trumpington, or near Addenbrooke’s. These areas see consistent enquiries from tenants looking for quality long-term homes with reliable landlords.

How Local Regulations May Affect Your Choice

Short lets are under increasing scrutiny in UK cities, and Cambridge is no exception. While ASTs operate under well-established national tenancy laws, short lets often fall into grey areas.

Key differences to consider:

• ASTs require deposit protection and formal eviction procedures

• Short lets may trigger business rates, insurance upgrades, and licensing

• Some areas now require change-of-use planning permission for Airbnb-style listings

If you’re unsure, professional advice from a Cambridge property management expert can help ensure your rental model doesn’t clash with council policy.

What Strategy Fits Your Property Type and Landlord Goals?

• Do you own a small city-centre flat? A short let might bring premium returns, but will require tight management.

• Have a semi-detached home near a research park or university? An AST with academic staff or a small family may offer consistent returns with fewer headaches.

Your time commitment, risk appetite, and income goals should guide your decision. ASTs often appeal to those looking for passive income; short lets attract landlords who enjoy a more hands-on, entrepreneurial approach.

Cambridge Stays Helps You Pivot Easily Between Models

What sets Cambridge Stays apart is our ability to manage both letting models under one roof. We provide:

• Market data and pricing recommendations for both ASTs and short lets

• Legal and compliance support regardless of strategy

• Transition services to help you switch from short-term to long-term (or vice versa)

For landlords who aren’t sure which direction to commit to long-term, we make it easy to test and adapt without the overwhelm.

Still Deciding? We’ll Help You Run the Numbers.

Cambridge’s dynamic rental market doesn’t reward guesswork—it rewards informed strategy. Whether you’re leaning towards an AST or a short-term let, Cambridge Stays offers the insight, tools, and hands-on management to help you succeed.

Let us show you which path suits your property, your goals, and your peace of mind.