Cambridgeshire rental market: August’s headline findings

We are now four months on from the biggest change to the private rented sector in almost 40 years.

The Renters’ Rights Act has changed the way landlords manage tenancies, review rents and regain possession. However, what effect have these changes actually had on Cambridgeshire landlords and tenants?

We will examine the local evidence during our next free landlord webinar on Wednesday 14 October at 6:00pm. If you would like to understand what has happened since the changes took effect and what landlords need to prepare for next you can reserve your place here.

Key Cambridgeshire rental property figures for August 2026

• Average rent across our managed portfolio: £1,250 per calendar month an increase of 8% year on year and 54% since August 2016.
• Average rent for a one-bedroom property: £929 pcm up 3% from August 2025.
• Average rent for a two-bedroom property: £1,088 pcm up 4% from August 2025.
• Average rent for a three-bedroom property: £1,311 pcm up 3% from August 2025.
• Notices to end tenancies: down 34% compared with the same period last year.

What’s happening in the general sales housing market?

• Fewer than 1 in 7 homes recorded year-on-year growth between 2021 and 2026
• Only 0.2% of UK homes, however, registered a persistent year-on-year value decline

Property has always moved in cycles, and landlords should be wary of making a permanent decision because higher compliance.

Zoopla’s most recent report shows that sales agreed are 9% lower than last year, while almost 30% of homes listed since April remain unsold without a price reduction. Buyers now have more choice, greater negotiating power and, across London and the South East, prices may remain flat or are showing a modest fall.

In other words, this may not be the moment to sell unless you genuinely need to. Your property may already have delivered considerable long-term growth, but selling into a weakening market could mean surrendering part of that gain.

If however, you are considering selling a tenanted property, please have a chat with us before serving formal notice.

You must now usually give four months’ notice when relying on the selling ground, and if the sale falls through, legal restrictions will prevent you from simply putting the property back on the rental market – you will need to wait 12 months from the end of the tenancy. A sensible first step may be to discuss the position with your tenant and explore whether the property could be sold with them

Will your rental property meet the new EPC requirements?

Reports of landlords looking to refinance continue in the light of MEES regulations increasing the minimum EPC to C by 2030. However, be aware that the matrix for working out an EPC is about to change. So make sure you understand what the new rules mean to your property before you spend thousands of pounds on the wrong improvements.

Makeup of available rental properties in the area

Two-bedroom homes continue to dominate the Cambridgeshire rental market. Again, we have seen an increase in four-bedroom properties becoming available.

Stock levels – what’s available to rent?

Rightmove data for August shows an increase of 6% on the number of available properties. As you can see from the graph below, we are starting to level out from a year in year basis. From our point of view, we are seeing more landlords re-enter the rental market as the hoped-for sale has not happened.

For the second month in a row the number of notices has dropped dramatically. The fact that tenants now need to give 2 months can’t be the reason as the Renters’ Rights Bill has been in place since May.

I feel that there is general uncertainty in the market so that tenants are staying with what they know. Landlords are also being rather more circumspect about giving notice due to wishing to sell as they must take into consideration that if a sale does not happen. They will not be able to rent the property out for 12 months from the end of the last tenancy. And data continues to say that only 50% of the homes that come on to the market sell. Also, if a home has not sold within 12 weeks it only has a 14.5% chance of selling.

What will your future tenant pay more for?

A recent study by Simply Business revealed the most desirable property features for renters and they are… counter space, good ventilation, large windows and space for a double bed that top the list. Therefore, it is important that descriptions always highlight these benefits if you have them.

Activity in the Cambridgeshire market

Across the Cambridgeshire areas we work in 163 properties were let in August. This is on with last year as you can see from the graph below.

Applicant demand

The data that everyone is producing shows there is still a great imbalance in the market – demand is high and supply is low which means if you are a tenant looking to secure a suitable home it remains challenging. Based on the number of properties we were marketing in August you can easily see that every property we marketed received and average of 11 enquires.

We are seeing more applicants with poor credit. Also, the number of people that do not disclose poor credit in the initial stages of referencing has increased.

There is an assumption that the Renters’ Rights Act primarily affected landlords’ exit options, but another real impact is felt at the point of referencing, not eviction. We have yet to see the impact of Section 8 and whilst we wait to see if as we all are predicting court delays will lengthen the time to end a tenancy, we have become more selective when it comes to choosing a tenant, as a bad choice could be costly.

However, this is already having an impact for high-risk applicants who have less stable income streams, such as self-employed workers or benefit recipients. This growing imbalance between housing demand and rental availability, combined with the elimination of Section 21, is making it increasingly more difficult for high-risk tenants to secure a property.

Rental trends – local breakdown by postcode

Each month we review the rental price by post code and bedrooms. What this table shows is for the main areas we manage properties the rents have increased 8% year on year, and the average rental now stands at £1,250. This type of information will be very valuable now that the Renters’ Rights Act requires any Section 13 (rental increase request) to be evidence-based.

Should you be thinking of selling?

Landlords decide to sell in the main for very personal, practical reasons – retirement, changing family circumstances, or simply wanting to cash in on decades of growth. In many cases, it’s the natural next step. However, given that the average gross return that we can report for landlords who started working with us 10 years ago is 15.6%, where is the alternative? Not forgetting the Capital Gains Tax you will be giving away.

But after all of that if you are thinking of selling, there are investors looking to increase their portfolio, as demand for quality rental homes remains incredibly strong. Even before properties are fully refurbished.

What does this mean for landlords like you?

I feel the shift presents an opportunity. For landlords who are prepared to have their properties managed professionally, whilst others stay ahead of regulation changes. The days of “set and forget” lettings might be behind us. But that doesn’t mean the private rental sector is no longer viable – far from it.

It simply means landlords need to be more strategic and better supported. We don’t believe the market is shrinking – we believe it’s maturing – and that’s a good thing for landlords who take their role seriously.

We’re here to help navigate the changes – whether you’re staying in for the long haul or reviewing your options. That is why we use all of the data we hold to share with you what is actually happening in our local area.

Why we share this data

Understanding where your property sits within the Cambridgeshire rental property market allows you to maximise rental returns, reduce void periods, maintain compliance, and make informed strategic decisions.

If you would like a data-led review of your current rental value, compliance position or portfolio performance, we are always happy to have a strategic conversation.

Why not book a call and see how we can help.