Rental market headline takeaways

As I write this the Renters’ Rights Act has come into law and looking at the various online groups shockingly, there are still quite a few landlords who do not understand what is required. The fundamental shift for landlords in Cambridgeshire is compliance. As I have said many times before the new rules and regulations have not collapsed the rental market — they have professionalised it.

Tenant demand has returned to the normal levels of 2023 and remains steady, but it must be remembered applicants do now have more choice. In addition, they are taking longer to decide and are more selective about where they live. As ever well-presented, well-managed properties continue to let smoothly. Properties that are poorly presented or incorrectly priced are taking longer, often at a cost through void periods, incentives or renegotiation.

This is not a tenant’s market. It is a professional landlord’s market.

Key Cambridgeshire rental market figures – April 2026

• Demand continues to outstrip supply
• Average rent across our managed portfolio: £14,352 pa (6% increase year-on-year)
• Average rent for a 3-bed property: £15,575 pa (6% up in April 2025)
• Average yield in the area (Rightmove) 6.5%
• Properties advertised locally: 19% higher than April 2025
• Percentage of properties let agreed: 12% up year-on-year
• Primary reason residents move :relocating out of area (32%)
• Second highest reason: purchasing a property (24%)

What’s happening in the overall housing market

A recent report by the development consultancy Marrons, has claimed that the number of households is projected to rise by 17% in England to a staggering 27.6m by 2040. Household growth the East of England is forecast to reach 18%. Obviously, this increase will stretch housing demand even further. The report shows that there’s a growing imbalance between supply and demand, with more than 1.3m households on local authority housing registers in 2025 and more than 320,600 social homes projected to be lost by 2040 if current trends continue. At the same time, the housing market now faces a generational squeeze. As first-time buyer households (25-44) are set to grow by 14% to 16.1m, student-age and young professional households (19-24) by 9% to 710,800 and later living households (65+) by 36% to 9.4m.

It’s not really surprising to hear that demand continues to outstrip supply. Which means that being a landlord is still a safe option. All be it that regulation changes with the introduction of Renters Rights Act on the 1st May have made the workload of a landlord more professional.

Makeup of available rental properties in the area

Two-bedroom homes continue to dominate the Cambridgeshire rental market.However, we have seen a big increase in three-bedroom properties becoming available. From our data it shows that this increase has been due to the landlords hoping to sell 6 months ago have not achieved a sale and therefore have returned to the rental market. Which means given average rental they will have lost £ 7,000 – £10,000 in rental and utility costs.
3-bedroom properties do rent quicker as they attract a wider audience and tend to have longer tenancies as there is a higher proportion of families that take residence. For investors as long as the asking price is correct you can still achieve a 5 – 6 % return in the local area.

Stock levels – what’s available to rent?

Rightmove data for April shows a continued increase in available rental properties, 19% higher than the same time last year. However, this month is showing a slowdown on the increase we have seen over the last few months.

With greater choice available to applicants, pricing strategy is critical. Rental properties must be positioned correctly from day one to avoid extended void periods.

Why are stock levels increasing

As mentioned above have seen a higher number of landlords revert to the rental market where they have not been able to sell. These properties have been out of the rental market for anything between 6 – 9 months.

Also, recent posts – on X and Instagram have used screenshots of HM Land Registry and Rightmove data to reveal the price falls in the Capital. The first example is a one-bedroom flat in Chelsea, purchased in February 2016 for £800,000 and sold in July last year for just £590,000 – a 26% loss.
Another one-bedroom apartment – this time in Croydon – was purchased in February 2019 for £350,000 but sold in July last year for only £230,000 – a 34% fall.

In January this year Hamptons found that 14.8% of Londoners in 2025 sold their home for less than they bought it for.
The social media posts are made under the pseudonym ‘LondonPriceDrops’.

This is also backed up by the Chartered Institute of Housing. Advising that house price growth has already started slowing, with Land registry suggesting house price inflation which was at 1.9% in December has dropped to 1.3% in January.

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.

From 1st May the Renters Rights Act may lead landlords to be more cautious about testing the sales market. As the new rules dictate, that a property which was previously rented and put up for sale cannot come back onto the rental market for 12 months from the end of the tenancy if it has not sold. As mentioned, many times before, if you want your property to let it must be priced correctly and make sure that your property sticks out from the crowd. Believe me, first impressions count even for rental property.

Does your property advert:

• Have a blue sky or a twilight shot ie has effort been put into the presentation
• Have images that fill the space, or are you seeing wide black margins
• Have updated description showing amenities
• Compare favourably with the competition – unless you have something special, bear in mind what void periods can do to your business.

As there is more choice on the market compared with last year it is critical that your property has standout marketing, accurate pricing, and quality presentation. This means that homes are taking longer to let and are more likely to be reduced in price as applicant choice increases.

Activity in the Cambridgeshire market

Across the areas we work in,146 properties were let in April. This is a 12% increase compared with April 2025. However, as you can see from the graph a reduction on what was let in March. This is very much due to where Easter fell this year.

Applicant demand

Applicant numbers have continued to drop when compared to April 2025. This I feel is due to the number of properties that are being remarketed i.e. once in a home tenants are staying longer. The main outcome of this is that rents are not increasing at the same levels we saw in 2023 – 2024 so we are only seeing a re balance of the market.

There remains a healthy level of enquiry when properties are correctly priced.

However, asking rent is now a decisive factor in speed of let and reduced void periods.

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 6% YOY and the average rental now stands at £1196. This type of information will be very valuable now that the Renters Rights Act requires any Section13 (rental increase request) to be evidence based. The biggest changes we have seen this month are in CB23 and PE29.

The big increases this month:

• CB23 a 23% increase for 1 beds
• PE29 an 8% increase for 2 beds
• CB23 a 9% increase for 3 beds
• PE29 a 13% increase for 4 beds

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.