The Intermediary – October 2025 - Flipbook - Page 95
L O C A L FO C U S
Cambridge
or international income streams.
With the continued investment into
Cambridge’s science and tech scene,
we have continued to experience a
stable demand.”
Popular lenders
When it comes to securing finance,
Cambridge’s borrowers benefit from
a lending landscape as diverse as the
city’s property market itself.
According to Jaman: “Locally the
market uses a mix of high street
banks and building societies, such
as Nationwide, Halifax, Lloyds,
NatWest, Barclays, Santander, HSBC,
and the major building societies,
for mainstream purchase and
remortgage business.” Alongside these
household names, specialist lenders
play an increasingly important
role. Jaman notes that “specialist
mortgage and buy-to-let lenders, like
Paragon, Precise and Kensington,
are commonly used for buy-to-let,
portfolio landlords and complex
income cases.” With Cambridge’s
diverse borrower base, he says
placements “are a mix of high street
throughput and specialist lenders for
non-standard cases.”
Mules agrees, but highlights the
influence of local institutions shaping
the market. He explains: “The range
of house prices in Cambridge and the
local areas is really wide ranging;
average detached house prices are now
over the £1m mark so we explore every
part of the lender market to broker the
right outcome for our clients.”
Among those most established
locally, he cites Cambridge Building
Society as a standout for products
and criteria “in keeping with their
local market,” as well as a strong
community focus. Mules also points to
Cambridge & Counties Bank, founded
in 2012 through a partnership between
Trinity Hall and the Cambridgeshire
local government pension scheme.
He adds: “With a relationship focus,
they were set up to support local SMEs
and encourage further economic
growth in Cambridgeshire. Initially
this was with commercial finance and
investment, but they now support
residential investment property
lending as well.”
Emerging developments
Despite its abundance of historic
charm, Cambridge continues to
balance tradition with forward-
looking growth, as new infrastructure
and residential projects continue to
reshape the city’s housing landscape.
The average price of a newly built
property in the area currently stands
at £471,000, around 3% lower than
last year, yet demand remains steady,
particularly for homes in the £300,000
to £750,000 range.
According to Mules, there are
“lots of ongoing infrastructural
developments in and around
Cambridge,” with the most notable
being the Cambridge South Railway,
which will connect Cambridge to
Oxford. He notes that the laer project
“will no doubt unlock opportunity
for housing and economic growth in
between,” providing a vital corridor
between two of the UK’s leading
innovation hubs. Beyond transport,
Mules highlights that there are “lots of
science and innovation spaces planned
for 2026, alongside the redevelopment
of the old Graon Centre.”
Pointing to developments in
Marleigh and Waterbeach New Town,
Jaman says: “New-build and earlyphase estates are driving activity at
the margins. They are bringing fresh
stock and aracting family buyers,
creating local pockets of movement
even when markets elsewhere slow.”
He adds that Cambridge’s ongoing
investment in transport infrastructure
is “supporting demand for homes
in new employment corridors,”
helping to future-proof the city’s
residential appeal while maintaining
its reputation as a desirable place to
live and work.
Rental dynamics
Perhaps unsurprisingly, Cambridge’s
buy-to-let (BTL) market remains
strong, underpinned by the city’s
enduring appeal to students and
academics. Around 22.5% of local
housing stock is privately rented,
slightly below the national average
of 23.6%. However, rental appetite
continues to outstrip supply.
According to Mules: “This 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.”
Mules describes the market as
being sustained by “longstanding
landlords who have owned investment
property in the city for a long time,”
Cambridge
Residents
471k
Average age
39.9
Residents per household
2.51
Cambridge postcode area.
Source: www.plumplot.co.uk
alongside new investors “looking for
opportunities to increase their yields
with shorter-term lets or properties
with multiple occupants.” Despite the
challenges, he remains upbeat: “As the
demand for rental property continues
to increase, we expect the market
to remain buoyant and continue to
innovate where it can.”
Jaman shares a similar sentiment.
He explains that investor appetite is
muted compared to previous years,
mainly due to tighter regulation
and more stringent lending criteria.
However, many landlords are still
active, especially “where rental yields
cover costs,” and “specialist BTL
lenders continue to operate and offer
competitive products for portfolio
landlords,” though higher-LTV deals
are now rarer than in previous years.
Steady momentum
Despite wider economic headwinds
and a market that prizes caution
as much as confidence, Cambridge
continues to show quiet resilience.
Cambridge’s unique blend of worldclass academia and tech innovation
has kept both buyers and investors
engaged, albeit with a measured hand.
Demand remains steady,
underpinned by a mix of long-term
residents, relocating students, and
landlords who see the city as a safe bet
even in uncertain times. As
As Mules puts it, in the face of
nervy markets and fluctuating rates,
“Cambridge continues to aract buyers
from the UK and abroad.” ●
October 2025 | The Intermediary
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