The best Cambridge postcodes for buy-to-let success

Cambridge, a city that marries historic elegance with modern innovation, is a prime location for buy-to-let investors. With its prestigious university, thriving tech sector, and picturesque settings, Cambridge offers a variety of opportunities for those looking to invest in the property market. Here, we’ll look at the best postcodes for buy-to-let success in Cambridge, considering factors like regeneration projects, local amenities, educational institutions, transport links, the property market overview, rental yields, and the most promising areas for investment. 

So, if you’re a landlord looking to invest in buy-to-let property in Cambridge, stick around. 

A walk down memory lane

Most people think of Cambridge University as the foundation of what makes the city, but it has a history dating back to the Roman era, as with most cities in England. The Romans built a fort on Castle Hill and the rest is history! 

In 975AD, when the Danes conquered eastern England, the story of Cambridge really began. All through the Anglo-Saxon and Norman periods, Cambridge continued to develop and grow until it was granted its town charter in 1207. 

Fast forward 77 years to 1284 and Cambridge University was born. The university is over 800 years old, and with it comes a lot of heritage and tradition. It is safe to say that Cambridge University is a big part of what is now classed as a city. 

Why invest in Cambridge?

But besides the university, the city has a lot more to offer its residents. From punting on the River Cam to exploring historic colleges and enjoying the vibrant arts scene, Cambridge offers a rich tapestry of activities. Let’s take a look at why you should be investing in property in Cambridge. 

High demand for rental properties 

Landlords want to invest in this incredible city because of the demand for rental properties. Cambridge has a very high student population, including academics and professionals. 

As such, there is a constant demand for rental high-quality property which ensures a stable rental market for landlords. 

Education

As previously discussed, Cambridge is world-renowned for its educational excellence and is home to one of the oldest and most prestigious universities globally. 

Beyond the University of Cambridge, the city offers outstanding educational opportunities, from primary schools to further education colleges, making it a magnet for academic talent and families prioritising education.

Thriving job market

Often referred to as ‘Silicon Fen’, Cambridge has a vast number of high-tech companies, startups and research institutions. 

Due to this, Cambridge has a lot to offer employment-wise, especially with big corporations like Cambridge University, Science Park and the Biomedical Campus.  

Transport and accessibility

The city’s transport network is another key attraction, with efficient rail links to London, extensive bus services, and cycle-friendly routes. 

This connectivity makes Cambridge postcodes attractive to professionals and students who value ease of access to the university, business parks, and beyond. 

Regeneration projects

There are a few regeneration projects taking place in Cambridge that will increase investment opportunities for you as a landlord and that will make investing in Cambridge more attractive. 

East Barnwell

There is currently a project to build 120 new council homes in East Barnwell. The project will cost Cambridge’s council £54 million to complete. The regeneration project will see the redevelopment of two sites on the corner of Barnwell Road onto Newmarket Road. 

All of the homes built will be classed as affordable housing and will be a mixture of either one, two or three-bedroom flats. Alongside this, there will also be a community centre and library built, as well as a cafe and a few shops. 

Grafton Centre

The second regeneration project currently taking place is Cambridge’s Grafton Centre. The Pioneer group had received planning permissions to turn the shopping centre into office spaces and a laboratory for life science and tech companies. 

The western part of Grafton Centre will remain a popular destination for shoppers and will also be transformed and improved. Luckily, there will still be designated time for retail therapy for your potential residents in Cambridge. 

The regeneration of Grafton Centre is said to create up “to 2,000 jobs from PhD to entry-level created within the new science centre.” (“Pioneer Group’s Regeneration Plans for Cambridge’s Grafton Centre Approved”) 

Property market overview

Now that we have established that investing in property in Cambridge will bring success to your property portfolio, let’s look at the property overview. 

Capital growth

Cambridge’s real estate scene is a beacon of steady capital growth, a testament to its enduring appeal. The city’s charm lies not just in its academic and cultural heritage but also in its knack for drawing more residents to its quaint streets and green spaces. 

With housing in high demand, property values in Cambridge have seen a consistent upward trajectory. Though the winds of market changes can blow now and then, Cambridge stands tall with a history of robust growth, making it an attractive spot for those looking to nurture their wealth over the years.

Rewarding rental yields

Rental properties in Cambridge are desired by everyone! Thanks to the never-ending flow of students, academics, and professionals searching for their next home, landlords often find themselves in the enviable position of boasting strong rental yields. 

This thriving rental market doesn’t just promise a steady income stream; it also pairs nicely with the gradual appreciation of property values, serving up a dual delight of rental earnings and capital gains on your investment platter.

The average rental yield that you can expect as a landlord in Cambridge is 5.74%, which is higher than the national average of 5.33%. 

Many investment choices

Fancy a charming period townhouse, a sleek modern apartment, or perhaps a piece in the latest development puzzle? Cambridge has it all and then some, including student digs that are always in vogue. 

What’s more, the city’s forward-thinking approach to sustainability and urban growth opens doors to investments in green and energy-efficient homes. This wide array of options allows you to pick and choose based on your investment style and how much risk you’re comfortable dancing with. 

The best postcodes for buy-to-let success in Cambridge

So, where is the best place to invest in property in Cambridge? 

City centre

With the average housing price sitting at £439,775, you can expect to earn a rental yield of 3-4% in the CB1, CB2, CB3, CB4 and CB5 areas. The demand for housing here is high, and it caters to both students and professionals seeking the vibrancy of city life. 

However, the limited supply means prices are on the steeper side. Areas like Mill Road, Petersfield, and Romsey stand out as the go-to spots for those looking for a hip and trendy city living experience.

The area is home to the main college buildings and is also a green oasis with lovely parks like Parker’s Piece, Jesus Green, and Midsummer Common. 

Suburbs on the south and east

These areas are known for some of Cambridge’s most premium housing. Grantchester and Newnham are favourites among well-to-do families and academics, while Cherry Hinton charms young families with its excellent schools. 

Trumpington, evolving from a quaint village to a lively suburb, offers newer homes at somewhat gentler prices, too. 

Northern suburbs

Heading north, areas like Chesterton, Arbury, King’s Hedges, and Fen Ditton present more affordable options, offering great value by Cambridge’s standards. 

The addition of the Cambridge North train station has made these suburbs even more appealing to those commuting into the city or London.

North of Cambridge

Here, you can expect to pay an average price of between £370,000 and £445,000 for property and can earn an expected rental yield of approximately 4% on CB24. 

The northern vicinity of Cambridge is dotted with large villages like Girton, Histon, Milton, and Waterbeach, offering a peaceful, rural ambience alongside convenient city access. 

These villages are perfectly placed with easy access to the A14, The Busway, and the Waterbeach train station, making them ideal for those looking for a mix of country and city life. 

South of Cambridge

In the CB22 postcode, you can expect to pay an average amount of between £440,000 and £558,000 for property. You can also expect to earn an average rental yield of 4% here. 

The southern outskirts of Cambridge, with charming towns and villages like Great Shelford, Little Shelford, Sawston, and Melbourn, offer a delightful retreat from the city’s busy lifestyle.

Popular among commuters for their proximity to local train stations and major roads like the M11 and A11, these areas blend accessibility with the serene beauty of the countryside.

Investing in Cambridge’s buy-to-let market offers the chance to be part of a city that harmoniously blends its rich history with a forward-looking perspective. With a strong rental market and continuous improvement, each of these postcodes presents unique opportunities for you as an investor. 

For more information on buy-to-let insurance, contact our team at CIA Landlords on 01788 818 670.