Cambridge Rental Yield — Buy-to-Let Guide

Cambridge Buy-to-Let Market Overview

Cambridge offers an average gross rental yield of 3.1%, which is below the England average of 3.6% by 0.5 percentage points. Yields across Cambridge's 3 postcode districts range from 3.0% to 3.1%, with average property prices at £506,709 and typical monthly rents of £1,300.

While average yields in Cambridge are below the national mean, the area may offer stronger capital growth potential. Investors focused on long-term appreciation rather than immediate cash flow should consider the balance between yield and price growth trends.

Best Postcode Districts for Buy-to-Let in Cambridge

The highest-yielding postcode in Cambridge is CB1 at 3.1% gross yield, where median prices sit at £495,127. Close behind, CB5 achieves 3.1% yield with prices around £500,000, and CB2 returns 3.0% at £525,000.

These areas typically offer lower entry prices relative to the city average, making them accessible for first-time landlords. Always check individual postcode pages for transaction volumes — areas with fewer than 30 sales over 3 years may show less reliable yield figures.

Local Authorities in Cambridge

This guide covers Cambridge.

• Cambridge — 3.1% avg yield, £500,000 median price

Investment Considerations for Cambridge

• Tenant demand: Check local vacancy rates and demographic trends. Areas near universities, hospitals, and major employers tend to have stronger, more consistent rental demand.
• Property type: Terraced houses and flats in Cambridge may yield differently. HMOs (houses in multiple occupation) can significantly boost returns — see our HMO yields guide.
• Tax implications: Remember to factor in stamp duty (the 5% surcharge for additional properties) and Section 24 tax changes when calculating net returns.
• Gross vs net: The yields shown here are gross. After costs (management, maintenance, void periods, insurance), net yields are typically 1-2% lower. Use our yield calculator for a detailed breakdown.

Frequently Asked Questions