The Intermediary – October 2025 - Flipbook - Page 93
Resilient but cautious
DAN MULES
director at Fitch & Fitch
JESSICA O’CONNOR
is deputy editor
at The Intermediary
“Cambridge benefits from a strong
academia and knowledge economy
– particularly in tech, biotech and
research – which has always created
a stable base demand for both
owner-occupiers and people wanting
property to rent.”
This constant flow of demand, he
explains, is underpinned by limited
supply as a result of tight land
restrictions and planning policy,
meaning that “average house prices
continue to creep up.”
Mules adds that the mortgage
appetite “seems resilient but remains
cautious,” with buyers shiing
focus beyond the city centre towards
surrounding villages and suburban
pockets, where he notes “property
is more affordable and offers more
variety and space.”
This view is echoed by Jahidu
Jaman, mortgage and protection
adviser at The Mortgage Providers, →
ambridge benefits from a strong academia and knowledge
economy – particularly in tech, biotech, and research – which
has always created a stable base demand for both owneroccupiers and people wanting property to rent. On balance, I
would say the mortgage appetite over recent months seems resilient but
remains cautious. Supply of property is limited due to land restrictions
and planning policy, but average house prices continue to creep up by
circa 1.5% per year, currently around £500,000.
Supply of housing for sale seems especially constrained in the more
desirable parts of the city, close to science and tech parks as well as the
universities. We seem to be seeing more activity in the less central areas
and more in the suburbs and surrounding villages, where property is
more affordable and offers more variety and space.
We deal with a huge variety of customer circumstances within our
core mortgage advisory firm, but we also have our Private Office arm for
high net worth (HNW) clients, which can be both UK and non-UK based.
Cambridge’s science and tech opportunities make this really relevant, so
we oen deal with those whose affairs are more complex, possibly with
multiple or international income streams. With the continued
investment into Cambridge’s science and tech scene, we have continued
to experience a stable demand.
e demand for rental property has always been very healthy. I spoke
to someone recently who confirmed rents have increased by as much as
9% in the last year. is is owed largely due to high demand being
created by students, academics and professionals coming to work in the
city. However, although the demand is high, the yields based on the
property prices are relatively low. e market that is familiar to us is the
core of longstanding landlords who have owned investment property in
the city for a long time, or those that are entering the market looking for
opportunities to increase their yields with shorter term lets or
properties with multiple occupants. Either way, as the demand for rental
property continues to increase, we expect the market to remain buoyant
and continue to innovate where it can.
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October 2025 | The Intermediary
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