Headline takeaways

• Rent is now on average £300 per month more than is was pre-pandemic.
• The average rent paid in our local area is now £1,160.
• The average rent for a 3-bed property in the local area is £1,273 up 8% from August last year.
• The number of properties coming to the market is 32% higher than August last year.
• Applicant numbers dropped by 22% year on year.
• 16% more properties rented out in August in the local area.
• Slight rise in 3 & 4-bed homes entering the market.
• Buy-to-let lending is up 17%, with 28% more purchases of new rental homes than last year.

Makeup of available properties

Spread of bedrooms in the area (information from ML data)

There has been no dramatic change to the split of bedrooms in the area that we cover (map above).

Our data shows two-bed homes dominate the local rental stock. However, as per last month’s figures noticing a gradual increase in 3 and 4 beds, which opens opportunities for owners in this segment to attract a broader demographic.

Stock levels

What’s on the market?

Data from Rightmove for August shows a 32% increase in available properties though out the local area we cover compared to August 2024. Which continues the trend we saw start in June. Again,  pointing to the fact that the general exodus of accidental landlords and those that are time-served as landlords is now turning.

The main take out from this is to make sure that your property sticks out from the crowd. Believe me first impressions count

• What are the photos like?
  • If they are on Rightmove / Zoopla have they got a blue sky
  • Do they fill the slot or are you seeing wide black margins
  • Is the first shot the most enticing – unlike one that I saw recently advertising a home at £1,700 with bathroom shot with the loo seat up – very appealing!
  • Has the description been updated does it show amenities
• How does it fit within 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

Based upon the area we service Rightmove have indicated that there were 168 properties let in August – a 16% increase year on year, and on par for what we saw last month. Given that July through to September are the busiest months for rental I would have expected this over all figure to be higher.

There are still no negotiations about the rental price, which for me is an indicator that there is not a great deal of choice when it comes to quality properties.

Resident demand – is it still high?

As you can see from the graph below, how the market changed in July 2024 when there was a marked change in the number of applicants looking for properties. As there was no ‘big event’ it could be put down to rents having just reached a peak and salaries had not caught up. August figures show us that we are on parr with demand still outstripping supply.

We are still seeing an average of five applicants (that we talk to) for each property that is marketed. You might be surprised to know that on average only 25% of people are actually really interested in looking for a property – seems like 75% are window shopping! Therefore, our job, for you, at this stage is to sort out the 25% as soon as possible so that we can reduce voids. Particularly with on the coming Renters’ Rights Bill, we have already put into place more pre-qualification questions to ask applicants so although the filtering process is taking longer, we are able to be more selective on the applicants we take to view a property and therefore can spend more time with them in the first instance.

In answer to the question why do people choose to 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 £1,151 but also means if the boiler goes the landlord will pay for a new one! Data from the English Heritage Survey showed that private renters spent 34% of their income on rent. They have also reported that the cost of rent is making it incredibly difficult to build a deposit. Younger renters face a mountain to climb paying the rent each month – and on average, private renters aged 16 to 24 spent half (50%) their income on rent.

Rental trends – local breakdown (by area and beds)

We use real-time local data to give you an edge. This is why our rent reviews for your presidents are always backed by evidence – not guesswork.

Average monthly rents for August 2025 across key postcodes

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’ Reform Bill – 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’re have been seeing 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 PRS 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 all the data

Knowing where your property sits in the market means we can maximise your returns and time your decisions smartly.

Why work with the Maxine Lester team?

We are specialists – not salespeople – and have 20 years of dedicated lettings experience across Cambridgeshire. Our proactive, data-backed approach means:

• Fewer voids
• Stronger residents
• Better returns
• Ongoing compliance
• We don’t wait for problems – we anticipate them and act, so you don’t have to.

Let’s talk strategy

The market is shifting – and there are real gains for owners who are proactive right now.

Book a free portfolio review or rental appraisal today with our expert team.
 Click here to schedule your call or call us on 01480 494939