Official data from the Office for National Statistics (ONS) show that the average house price in Cambridge was about £498,000 in August 2025, similar to August 2024. This is far higher than the East of England average of £343,000 and the UK average of £273,000. Prices vary by property type: in the year to August 2025 semi‑detached houses rose 1.8%, while flat prices fell 1.5%. Monthly rents averaged £1,772 in September 2025, up 3.9% from the previous year. First‑time buyers paid around £418,000, while mortgage buyers averaged £493,000. Private reports broadly corroborate these figures. Investropa estimated the average price at £507,000 in mid‑2025 and noted that Cambridge property prices increased by 7.4% year‑on‑year. The same report suggested rental yields of 3‑4% for standard buy‑to‑let investments. CIA Landlord Insurance calculated a higher average rental yield of 5.74% across Cambridge – above the national average of 5.33%. In the city centre (CB1–CB5) average house prices were about £439,775 with yields of 3–4%, while northern suburbs (CB24) offered yields around 4%. On the ground, Cambridge estate agent Ellis Winters described summer 2025 as a buyer’s market: more homes were available and sellers had to price competitively to attract interest. Rightmove reported a 0.3% drop in asking prices, while Nationwide’s index showed a 0.8% decline. Despite this, July 2025 was the busiest month for sales since March 2022, aided by improved mortgage rates. The advice to sellers was simple: price realistically to secure a sale. Demand drivers Several factors underpin Cambridge’s strong rental market: • High student and professional demand. About 31% of households rent privately in Cambridge – up from 26% in 2011 – thanks to the city’s two universities and the growth of “Silicon Fen” technology and biomedical sectors. Major employers such as AstraZeneca, Microsoft and Amazon attract professionals who often prefer to rent. • Rising rents. Average monthly rents of £1,755 in early 2025 were 8.7% higher than a year earlier. Rental yields of 4–5% can be achieved in some areas despite high property prices • Regeneration and infrastructure. Cambridge is investing in new council homes in East Barnwell and redeveloping the Grafton Centre into offices and labs. These projects will create jobs and enhance the city’s appeal. Efficient rail links to London, cycle routes and the new Cambridge North station make the city accessible. These fundamentals support long‑term capital growth, even though prices can fluctuate in the short term. Investors must, however, plan for high entry costs and changing regulations.