Cambridgeshire rental property 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 since 1st May.

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.

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.

Key Cambridgeshire rental property market figures for July 2026

• Average rent across our managed portfolio: £1,243 pm (8 % increase year-on-year). A 54% increase on June 2016.
• Average rent for a 1-bed property in Cambridgeshire: £920 up 2% from July 2025
• Average rent for a 2-bed property: £1,081 pcm up 4% from July 2025
• Average rent for a 3-bed property: £1,308 pcm up 4% from July 2025
• 6% more properties were let in July 2026 compared to July 2025
• We have seen notices to end tenancies drop by 54% year on year
• The average interest rate across all new buy-to-let loans in the UK was 4.71%

What’s happening in the housing market?

UK Finance data shows the rental market continuing to hold its own, The latest figures for the buy-to-let sector show ‘incredible resilience’, proving that property investment remains highly attractive, according to reaction to UK Finance’s quarterly update.

The figures showed that in the first quarter, 58,272 new buy-to-let loans were advanced in the UK, up by 3.26% compared with the same quarter last year and worth £10.8 billion, a 7.02% rise in value according to lender MT Finance. Various other mortgage providers are also reporting that the Renter’s Rights Act has not deterred professional landlords.

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 – a subject that was covered in our recent webinar.

Makeup of available rental properties in the area

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

Stock levels – what’s available to rent?

Rightmove data for July shows virtually the same number of properties on the market as last month and although we are seeing an increase on last year of 19%.

Interestingly the number of notices that we have received has dropped dramatically. There are several reasons at play:

• Tenants now must give two months’ notice
• Landlords are 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.
• 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.
• We expect things to start balancing out by September.

What will your future tenant pay more for?

A new study by Simply Business revealed the most desirable property features for renters and it is… 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 189 properties were let in July*. This is a 6% increase as compared with July 2026. But as you can see from the graph below a new record since January.

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. As you can see from the graph below for every property we have advertised in July on average, we have received 19 enquires.

This in a way is causing an additional challenge in that the quality of applicants we are seeing is reducing.

We are seeing more applicants with poor credit. And more requests for groups wanting to set up home together so that the affordability can be achieved.

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.

Patchy credit histories

Among younger renters, care leavers and those who experienced financial hardship during the pandemic, CCJs and Individual Voluntary Agreements (IVAs) are becoming increasingly more common. Prior to the removal of Section 21, credit checks were one screening factor among several others, but now they are considered immediate reasons.

So 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 that 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.

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.

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.