What Are the Average Rental Returns in Cambridge?
Average rents in Cambridge vary significantly by bedroom count. The table below shows current average monthly rents alongside the 70th-percentile range, giving you a realistic picture of what tenants are paying across the Cambridge rental market.
| Bedrooms | Avg Monthly Rent | 70% Range | Annual Rent | Listings |
|---|---|---|---|---|
| 1-bed | £927 | £190 – £230 /wk | £11,124 | 20 |
| 2-bed | £1,057 | £225 – £300 /wk | £12,684 | 20 |
| 3-bed | £1,434 | £312 – £358 /wk | £17,208 | 20 |
| 4-bed | £1,816 | £352 – £507 /wk | £21,792 | 20 |
Source: PropertyData.co.uk, based on current rental listings sampled from town centre. Updated April 2026.
What Is the Rental Yield in Cambridge?
Gross rental yield is calculated as annual rent divided by asking price, expressed as a percentage. A yield above 5% is generally considered strong for buy-to-let in the UK. Here is how Cambridge performs across each bedroom count.
| Bedrooms | Avg Asking Price | Avg Monthly Rent | Gross Yield |
|---|---|---|---|
| 1-bed | £172,240 | £927 | 6.5% |
| 2-bed | £233,000 | £1,057 | 5.4% |
| 3-bed | £343,500 | £1,434 | 5.0% |
| 4-bed | £529,000 | £1,816 | 4.1% |
Gross yield = (monthly rent × 12) ÷ asking price × 100. Based on current listing data from PropertyData.co.uk.
How Much Is Stamp Duty on a Buy-to-Let in Cambridge?
Buy-to-let purchases are classified as additional properties and attract a 5% Stamp Duty Land Tax (SDLT) surcharge on top of the standard rates. This surcharge was increased from 3% to 5% in October 2024. Here is what you can expect to pay at average asking prices in Cambridge.
| Bedrooms | Avg Asking Price | Stamp Duty (BTL) | Effective Rate | Total Acquisition |
|---|---|---|---|---|
| 1-bed | £172,240 | £8,612 | 5.0% | £180,852 |
| 2-bed | £233,000 | £11,650 | 5.0% | £244,650 |
| 3-bed | £343,500 | £21,850 | 6.4% | £365,350 |
| 4-bed | £529,000 | £40,400 | 7.6% | £569,400 |
Use our Stamp Duty Calculator for custom calculations at any purchase price.
Is Cambridge Good for Student or HMO Lettings?
Cambridge is a university town with significant student rental demand. The following institutions drive year-round letting opportunities:
- University of Cambridge
- Anglia Ruskin University
HMO Licensing in Cambridge
Cambridge City Council operates Additional HMO Licensing covering most central wards. Any HMO with 3+ occupants from 2+ households in covered areas needs a licence. Mandatory licensing applies to all 5+ occupant HMOs citywide. Enforcement is active and the council is investing in PRS oversight.
Should You Invest in Cambridge as a Landlord?
Cambridge offers solid gross yields, with the best-performing 1-bed properties achieving 6.5%. With 2 universities, student demand provides a reliable tenant pipeline for HMO and standard lettings alike.
Key strengths: Above-average yields at accessible price points. Year-round student demand reduces void periods. Familiar SDLT regime for English investors.
Considerations: The stricter HMO licensing regime means higher compliance costs — factor licence fees and property standards into your budget. The 5% SDLT surcharge (since October 2024) adds to upfront costs. Always account for void periods, maintenance reserves, and Section 24 tax restrictions when calculating net returns.
Frequently Asked Questions
Quick answers to the most common questions about this topic.
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Disclaimer: This guide is for informational purposes only and does not constitute financial or investment advice. Rental and property price data is sourced from PropertyData.co.uk and reflects current listing averages, not guaranteed returns. Past performance does not predict future results. Always conduct your own due diligence and consult a qualified financial adviser before making investment decisions. Stamp duty figures are estimates — use our calculator for precise calculations.