This essential rental market update for landlords with property in Cambridgeshire comes with insight directly from the portfolio we manage across Cambridge, St Ives, Huntingdon, Ely and surrounding villages. It reflects real performance data from professionally managed rental properties, alongside Rightmove statistics aligned specifically to the Cambridgeshire postcodes we service.

Headline takeaways

The discussion around the Renters’ Rights Act continues, but the fundamental shift for landlords in Cambridgeshire is compliance. Regulation has not collapsed the rental market — it has professionalised it.

Tenant demand remains steady, but applicants now have more choice. They are taking longer to decide and are more selective about where they live. 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 – February 2026

• Average rent across our managed portfolio: £1,196 pcm (7% increase year-on-year)
• Average rent for a 3-bed property: £1,297 pcm (7% up on February 2025)
• Properties advertised locally: 24% higher than February 2025
• Applicant numbers: 38% lower than February 2025
• Percentage of properties let agreed: 5% down year-on-year
• Primary reason residents move: relocating out of area (32%)
• Second highest reason: purchasing a property (24%)

Makeup of available rental properties in the area

Two-bedroom homes continue to dominate the Cambridgeshire rental market. However, we are seeing a gradual increase in four-bedroom properties becoming available.

For landlords in this segment, this presents an opportunity to attract a broader demographic, particularly families relocating within the county or upsizing from smaller rental homes.

Stock levels – what’s available to rent?

Rightmove data for February shows a continued increase in available rental properties, 24% higher than the same time last year.

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

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 we now know that landlords will not have the flexibility to bring a non-sold property back into the rental market. Since they will have to wait 12 months before it can be rented out again. 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 market

Across the areas we manage, 141 properties were let in February – 5% down on last year. Over the last 18–24 months, rental values rose sharply, especially in Cambridge, St Ives, Huntingdon and Ely, however, tenant incomes have not increased at the same pace. We are now seeing a natural ceiling effect on newly launched rental prices.

Resident demand

Applicant numbers dropped significantly in July 2024 and remained lower year-on-year. As we reported last year the market changed quite dramatically in July 2024 in that applicant numbers dropped quite significantly.

February figures would indicate that applicants are now staying in their homes longer. We have also seen an increase in people moving from Cambridge city centre into cheaper towns and house sharing instead of renting alone. Another reason to add to the melting pot is something we picked up last month being net migration which is down. With existing residents leaving, previously occupied homes have been freed up, contributing to the rise in rental availability across the market and alleviating some of the strain being felt in the rental 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.

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.

The top motivation, cited by 37% of 18–34-year-olds, is desire for a different location that better suits their life, such as being closer to family or moving between rural and urban areas.

Why do residents move on?

We are always keen to understand what the data shows (that’s why we keep a lot). One area we began to look at in 2024 was the reason for residents wanting to move from the home they were living in. The media would have us believe that it is because rents are so high so we wanted to be in the driving seat on this narrative. Therefore, over the last two years we have been tracking the reasons. The data below comes from 263 notices that we have dealt with over the last 12 months. By far the highest is moving out if the area (32%) but to match what we have said regarding applicant numbers the number of residents leaving due to buying has increased by 6 percentage points.

Rental trends – local breakdown by postcode

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.

Some inherited portfolios are split between siblings, which often makes holding onto them more trouble than it’s worth. At the same time, buy-to-let economics have shifted. Mortgage rates have risen, and tax changes mean the returns just aren’t what they used to be, especially for smaller landlords with higher leverage. That’s the rebalancing.

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 owning 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.

Book a call with Maxine now.