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, semi-detached houses rose 1.8% year-on-year, 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. 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%. Local agents 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.

Demand drivers

• High student and professional demand: About 31% of households rent privately, driven by the city’s universities and the growth of the Silicon Fen technology and biomedical sectors.
• 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 and redevelopments, with strong transport links supporting long-term capital growth.

Investors must, however, plan for high entry costs and changing regulations. Professional advice is recommended to navigate this competitive and evolving property market.