CAMBRIDGE RENTAL PRICE TRENDS: WHERE ARE THEY HEADED IN THE NEXT 12 MONTHS?

Empty homes don’t just collect dust—they erode profits. As we approach 2025, many Cambridge landlords are asking the same question: should I raise, freeze, or reduce my rent this year? Understanding where the market is headed can make or break your strategy. Whether you manage one flat or a dozen HMOs, forecasting rent trends is critical to setting smart prices, avoiding voids, and staying competitive.

What Drove Rent Growth in the Last Year

Cambridge rental prices saw significant upward pressure over the past 12 months, driven by a mix of inflation, constrained supply, and continued demand from professionals, students, and relocating families. Areas such as CB1 and CB2—thanks to proximity to rail stations, Addenbrooke’s Hospital, and university colleges—experienced average rent hikes between 6% and 9%. While much of the UK cooled, Cambridge bucked the trend due to its tech-sector resilience and academic demand base.

Short lets and serviced apartments also remained buoyant, particularly in the post-pandemic flexible travel era. The most in-demand stock—2-bed apartments to let Cambridge tenants could occupy for under £2,000/month—saw faster relets and multiple applications per listing.

Forecast Factors: Demand, Regulation, and Supply

The Cambridge rent forecast for 2025 is shaped by a combination of structural and external factors:

• Student Intake and Academic Recovery: International student numbers are projected to stabilise. This supports demand for HMOs and flats to let Cambridge undergraduates and postgrads prefer near university hubs.

• Planning Constraints: Local development limitations continue to restrict new housing supply, especially in CB3 and city-fringe zones.

• Regulatory Pressure: With national policy still debating rent caps and energy efficiency upgrades, some landlords may exit the market, constricting available rental stock.

These levers suggest that rent levels will either hold steady or rise modestly in high-demand zones, especially for properties with upgraded EPC ratings and quality furnishings.

Area-Based Price Predictions (CB1, CB4, Suburbs)

CB1 – Station Area & Mill Road: Expect modest growth (2–4%) for professionally presented one- and two-bed flats. The area remains popular among commuters and young professionals. Short let Cambridge UK properties in this area will stay in strong demand due to connectivity.

CB2 – City Centre: High-end and heritage flats to let Cambridge professionals desire will remain pricey but reach a growth ceiling. Rents likely to plateau as affordability maxes out.

CB4 – North Cambridge: Growth expected around the Cambridge North station and Science Park, especially for newer builds. Executive short let apartments Cambridge investors own here should continue to yield well.

Suburban Areas – Cherry Hinton, Trumpington, Queen Edith’s: Families seeking houses to let in Cambridgeshire still fuel steady demand. Rents here will see moderate increases (3–5%) tied to school catchments and parking availability.

How Cambridge Stays Helps You Adjust Without Losing Tenants

At Cambridge Stays, we don’t guess. We track live pricing across hundreds of listings—long let and short term let in Cambridge—so we can advise landlords on pricing that strikes the right balance between profit and occupancy. Here's what our pricing process includes:

• Comparative analysis of similar properties in your postcode

• Occupancy tracking across Airbnb, Booking.com, Rightmove, and Zoopla

• Tenant feedback data to help you decide whether to raise rent or improve amenities

• Monthly reporting so you can see how your pricing affects your yield

Whether you own a flat to let Cambridge graduates love or a house to let in Cambridge with garden access for families, we tailor the strategy for your ideal tenant.

Unsure how to price this year? Let’s review your options.

You don’t have to predict the market alone. With the right guidance, you can avoid underpricing—or worse, pricing yourself out of demand. Let Cambridge Stays take the guesswork out of your 2025 rent planning.