Cambridge is a city of leafy suburbs, family-filled green open spaces and tourists punting along the river. Combine its role as a historic city with a world-renowned University and a 45 minute commuting time to London’s Kings Cross, you result in something of a property hotspot.
Offering an attractive rental yield of 6.48%1 and a student population that’s budding faster than the city’s riverside daffodils, Cambridge is definitely a city for both town and gown.
Who lives there?
Cambridge’s population is nearing on 125,700, and second only to Milton Keynes, the city is one of the fastest growing in the country2 with the total number of households increasing 9.5% since 20013. The city is predominantly home to a youthful market, with the population continuing to show a bulge in the number of people between 16-24 and 25-39.
Cambridge has a much higher than average proportion of people in the highest paid professional, managerial or administrative jobs (32.6% vs. 23.5%)4 and a higher than average proportion of people with a high level qualification (e.g. degree, Higher National Diploma, Masters or PhD), (41.2% vs. 19.7%)5. These statistics are indicative of the large student population and young professionals who chose to stay in the area after graduation.
The city also boasts a booming tourism trade, attracting over 3,500,000 tourists each year and generating £350M annual revenue for the city6.
Increasing demand, rising rents
Cambridge has “a significantly higher proportion of private rented homes and Homes in Multiple Occupation than the national average”7, with 26% of housing tenure being rented, a 5% increase over the previous decade8.
Current Student Population: 30,000
% Housing Stock Let: 26%
Average Monthly Rent: £1,001
Average House Price: £185,414
Average Rental Yield: 6.48%
The bottom line
With an average rental yield of 6.48% and one of the fastest growing populations in the country, being driven by an affluent, youthful demographic, Cambridge’s appeal as an investment opportunity shows no sign of waning.
4 ONS census 2001
5 ONS census 2001
6 Cambridge Online
8 Cambridge City Council, 2011