Rental market headline takeaways

We are now three months on from the biggest change to the PRS in just under 40 years. We recently held a webinar (watch back here), which looked at what had changed in the last 62 days. The data was captured from the portfolio we manage in Cambridgeshire and our network group. in effect we were looking at the outcomes of over 2,000 tenancies and many hundreds of calls with landlords.

The main change is compliance. Whatever you do now, be it increasing the rental, selling or dealing with enforcement – your safety blanket going forward is compliance and understanding what is needed to run your rental business.

However, with a change in Prime Minster and expecting it to be Andy Burnham look out for some more nuance. During his time as Mayor of Greater Manchester, Andy Burnham backed the Good Landlord Charter, an initiative designed to recognise and support responsible landlords while raising standards across the sector. Whether that approach will be applied remains to be seen, but it points to a different philosophy as opposed to pure enforcement. His motto was “reward good practice and punish bad practice”. As a landlord I would welcome the balance.

From a landlord’s perspective, we’re also seeing more properties return to the rental market after struggling to sell. With the shortage of high-quality rental stock still very real, it’s creating strong competition and pushing rental prices higher, alongside a calibre of tenant that feels as strong as it’s been for a long time.

My feeling continues that it is not a tenant’s market. It is a professional landlord’s market.

Key Cambridgeshire rental market figures – June 2026

• Average rent across our managed portfolio: £1,243 pm (8 % increase year-on-year). A 54% increase on June 2016. This means that Cambridgeshire is doing far better than The HomeLet and Zoopla rental index which only breck down the figures as far as East Anglia.
• Average days to let a property 21
• Average rent for a 1-bed property in Cambridgeshire: £920 up 2% from June 2025
• Average rent for a 2-bed property: £1,079 pcm up 4% from June 2025
• Average rent for a 3-bed property: £1,307 pcm up 5% from June 2025
• Emov reported Cambridge was the only place analysed to see a rise in buy-to-let landlord searches, up by 23.5% year-on-year.
• Rightmove data shows “it’s about as good as it gets for investors.”
• 14% more properties were let in June 2025 compared to June 2025
• Cambridge South Station opened on June 28th primarily serving the bio medical Campus
• Nationwide research found that tenants renting from a private landlord waited almost two months on average for their deposit to be returned. At Maxine Lester we achieved an average of eight days
• Primary reason residents move relocating out of area (32%)
• Second highest reason: purchasing a property (24%)

What’s happening in the overall housing market

Reports of landlords looking to refinance continue in the light of MEES regulations increasing the minimum EPC by 2030. However, be aware that the matrix for working out an EPC is about to change a subject that was covered in our recent webinar.

Rightmove has reported that it’s the best it has ever been for investors as prices are coming down due to a very sluggish market. With rents on the up yields will improve but this is a long game so anyone thinking of snapping up a bargain needs to understand both the perils and the benefits.

Makeup of available rental properties in the area

Two-bedroom homes continue to dominate the Cambridgeshire rental market. We have also continued to see an increase in three-bedroom properties becoming available. As last month a number of properties we started to market were down to returning landlords as the properties had not sold. Recently Zoopla reported that 2/3 of properties were unsold that had been listed from January putting this down to an unsettled buyers’ market due to the US / Iran war and its effect on mortgage rates.

Selling your asset is a personal choice and I would always get expert advice before going down this road as the losses experienced by the landlords that returned to the rental market had lost an average of £9,347 in rental. This was obviously higher as they had had to pay council tax whilst the property was empty.

Stock levels – what’s available to rent?

Rightmove data for June shows an increase in available rental properties, 22% higher than the same time last year. As tenants now must give two months’ notice properties that were on the market towards the end of May and in June had little chance of being filled because the goal post had been moved. We expect the market to rebalance by September and will be expecting an increase next month. As there are more properties available it is vital to get the marketing correct as an overpriced, badly presented home will go to the bottom of the pile.

In addition, we have seen a higher number of landlords revert back to the Cambridgeshire rental market where they have not been able to sell.  An interesting piece in the UK Property Advice Community which gives a reason for this happening stated:

• Only 50% of the homes that come on to the market sell.
• 53.5% of sellers successfully moved.
• If a home has not sold within 12 weeks it only has a 14.5% chance of selling.
• If a home secures a sale agreed within the first 25 days because it is realistically priced. It has a 94% chance of reaching exchange and completion. Wait until 100 days to agree a sale that drops to 56%.
• Since 2001 UK homes have sold within roughly 0.9% to 1.3% of the final asking price – that’s not the original.

What will your future tenant pay more for?

A new study by Simply Business revealed the most desirable property features for renters. And its counter space, good ventilation, large windows and space for a double bed that top the list.

The research commissioned by the insurance provider takes a room by room look at what matters most for renters. In short, they found that renters prioritise practicality.

Sufficient counter space tops the kitchen wish list for half of all renters (50%), making it the single most sought-after feature across the entire home.

Storage (41%) and natural light (40%) follow closely. In contrast, kitchen islands – often held up as the ultimate selling point – are most important to just one in ten (10%).

In the bathroom, good ventilation (41%) and water pressure (40%) rank above modern fixtures (21%), heated towel rails (11%) and heated flooring (6%).

In the bedroom, lots of natural light (46%), space for a double bed (67%) and built-in wardrobes (45%) are non-negotiables while renters prioritise larger windows (43%), space for a corner sofa (27%) and access to the outside or French doors (26%) in the living room.

A private garden leads the way at 44% across all respondents.

Activity in the Cambridgeshire market

Across the Cambridgeshire areas we work in 180 properties were let in June. This is a 14% increase as compared with June 2025. But as you can see from the graph below a new record since January.

Applicant demand

Applicant numbers are showing the normal pattern for the year and continue to grow since May 2026. 2025 figures are a complete anathema with no one as yet being able to explain why there was such an increase in applicant demand. Increased immigration as been mooted as a reason but no facts / data seem to back this up.

Affordability is still very much a key factor in being able to rent a property.  Zoopla have reported that average earnings are now growing twice the rate of rents.

Why do people rent?

You only need to look at the alternative. The cost of getting a mortgage on an average house in the area is now £1,136 per month (at 4.6% on 25-year loan) against an average monthly rental cost of £1,196. However, you also need to consider the deposit, which at the present level of rents is hard to accumulate, and it means if the boiler goes the resident does not need to pay for it the landlord does.

Recent research by Zoopla suggests that almost two thirds of young homeowners (18–34-year-olds) now feel that owning a property holds less importance than it did for their parents’ generation. This declining emphasis on permanence has seen almost half of this group anticipating moving home within the next five years, decisively rejecting the notion of settling in one house for life.

In addition, a Sky News report claims rents now take 36.1% of tenants’ average earnings – the highest level on record. Therefore, they are more likely to stay where they know there are no issues.

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 £1,243. 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.

Private renting is changing – but that’s not always a bad thing

For some months now we have been saying that the market is rebalancing and against everything that is written in the media we have been showing you how the market is evolving – and for landlords who are ready to adapt, there are real opportunities. Agreed some landlords are choosing to leave the sector, but this isn’t just a reaction to regulation or bad press.
Many are doing so 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. All this means is that the landlord profile is shifting. The market is becoming more professional, with fewer “accidental landlords” and more investors focused on doing it properly – and profitably.

Why are some landlords selling up?

There’s no denying the sector has become more complicated. Regulation is increasing – from EPC targets to the Renters’ Rights Act – and managing properties isn’t as straightforward as it once was. For landlords who entered the market in the ’90s or early 2000s, many are now retiring or passing properties to children who may not want to take them on. However as mentioned above, a good majority of them are returning to the market as the properties do not sell.

As some landlords exit, we have seen others step in. Professional landlords, property companies, and well-capitalised investors are still buying and they’re doing it with a long-term mindset: focusing on quality homes, strong management, and sustainable returns. We have seen this in the portfolios we manage for landlords that do not want to own property to take away time from the day job.

Demand for quality rental homes remains incredibly strong. Even before properties are fully refurbished, we have good residents who want to move into a larger property as the family grows and those that want less space.

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 for them. 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 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.