Cambridge Rental Scene – Post Renters Rights Act (1st May)
The Renters Rights Act together with economic and immigration policies are impacting the rental market in Cambridge, here is how.
Changes in Student Rental Demand in Cambridge
There has been a drop in overseas students coming to Cambridge, with a modest decrease of about 1% for undergraduates but a much larger decrease of 5–10% depending on the type of postgraduate course. As a result, there has been a marked decrease in demand for rental properties, particularly 5- and 6-bedroom houses. This has led to a sharp decrease in some rents.
Well situated student properties near ARU and the City Centre which are well presented are the first to let, and rents have remained firm and, in a few cases, increased. Landlords who invest in upgrading their properties will benefit from stronger rental values and avoid the risks of last-minute price drops.
Slower Demand Across the Wider Rental Market
Non-student properties have also seen a slowing down of demand. Some of the key drivers are an increase in apartments after the post-pandemic surge, a shift from Airbnb to the long-term rental market, reduced demand, and the introduction of the Renters Rights Act making landlords nervous and increasing affordability criteria.
How Immigration Policy Is Affecting Rental Demand
The introduction of new immigration rules has seen fewer people moving to work in Cambridge, and those who do come from overseas are generally more highly paid and are looking for higher end properties.
A Rebalancing of the Cambridge Rental Market
Over the past 12–18 months we are witnessing a rebalancing of the rental market. For long-standing landlords, rents remain good relative to their initial investment. Central Cambridge, along with Chesterton and areas around the Science Park, remain strong. Demand is weaker in some of the villages, while areas like Mill Road are more mixed.
Landlord Confidence and the Renters Rights Act
The Renters Rights Act has certainly encouraged some landlords to sell up. There has also been a trickle of requests for pets, sometimes with unrealistic expectations. Understandably, some landlords are nervous and are ensuring they take out rent guarantee services to protect against non-payment, refusal to vacate, and unreasonable challenges to rent increases.
A few have exercised their rights to end tenancies early, but it is still too early to see how this will impact overall landlord behaviour.
Cambridge Rental Market Predictions
Cambridge has a strong economy and demand for rental property will always be present. It may not be as strong as in recent years, but demand has always ebbed and flowed. Well situated and well-presented properties that are accurately priced will continue to let.
Whether you're reviewing rents, considering upgrades or planning your next move, our local experts can provide practical advice based on current market conditions.
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