Now that we have reached autumn, the pace of the city has slowed slightly after the tourists have left, and buyers who spent the summer house-hunting are returning with a clearer idea of what they want. This year, the mood is cautious, but you can’t blame anyone for that after a rocky post-COVID period that seems to have gone on forever. Buyers are not rushing headlong, and sellers are learning to be realistic with their expectations. This blog post presents our perspective on the current property market, supported by the latest data and offering practical advice for those looking to buy, sell, rent, or let. So, let’s get started…

Interest Rates, Prices and Rents

Two facts set the tone for the market in autumn 2025: interest rates and the direction of prices. The Bank of England has recently held the base rate at 4%, signalling a cautious (yep, it’s that word again) stance as inflation remains above target. This position directly influences mortgage pricing and lender behaviour across the market. On the topic of prices, the national picture has been one of modest growth and stability. Some of the larger mortgage providers have shown only small annual increases through 2025, and several reputable forecasters expect minimal growth in the mainstream market for the rest of the year — and possibly into 2026.

But more importantly to us, how is Cambridge doing? Is there reason to be worried? Absolutely not. Our city combines a high-value, knowledge-driven housing market, fueled by a crazy number of tech and life-science jobs alongside the University, making it one of the tightest rental markets in the country. Recent local reports point to rent growth and consistent remand, even as sales volumes and buyer behaviour have cooled slightly (note the word ‘slightly’). The Office for National Statistics even shows that private rents in Cambridge have risen year-on-year, which, from a landlord’s point of view, isn’t bad news at all.

Cambridge Neighbourhoods

Cambridge is not one housing market but a series of neighbourhoods, each behaving differently. In the city centre, demand from professionals seeking proximity to colleges and the riverside remains strong, both in regard to sales and rentals. Some other patterns we have seen include:

  • Newnham, Romsey and Chesterton remain highly sought after by family buyers who prioritise schools and convenient transport to the science parks. Prices here sit above the city average, and competition for extended family homes remains high.
  • By contrast, in Arbury, Kings Hedges and parts of North Cambridge, more supply has come to market this year. Buyers who previously stretched for central locations are now considering these areas for better value, so well-kept three-bed terraces are being snapped up fast, but – and this is the important part – they need presentation and maintenance to stand out, as buyers haven’t dropped their expectations. Why should they!
  • Meanwhile, villages in the greater Cambridge area (such as Milton and Impington) appeal to commuters and those tied to specific employers. These areas offer a better work-life balance at a lower entry price. That never really changed; it just slowed down.

On average, Cambridge prices remain well above the national norm, supported by substantial employment and university-related demand. Yet buyers are far choosier than they were during the early post-COVID years, with mortgage affordability and job security acting as strict filters. Local agencies, such as ourselves, would describe today’s market as stabilising rather than booming. But that is no bad thing, as we are still moving in a positive direction for everyone. The future of the property market is looking increasingly more positive.

Renting in Cambridge

Lettings remain one of the brightest spots in the Cambridge property market, with the private rental sector recording clear year-on-year increases. Student demand, combined with relocations from the tech sector, keeps rental occupancy consistently high. For landlords who maintain property standards, whether on their own or with the help of professional management (another shameless plug for our services), the benefits remain generous. However, the sector is not without its challenges. Ongoing legislative changes and rising compliance costs mean landlords must now be more proactive in their approach to maintenance, EPC ratings, and tenancy management, among other items on the ever-growing list.

Mortgages and Funding

Even though the Bank of England base rate remains at 4%, mortgage pricing does not always move in perfect step with it…which is why the future of the property market is so hard to predict. For buyers who can secure a fixed-rate mortgage now, particularly those with decent deposits, there is an opportunity to gain greater certainty over the next two to five years compared to those relying on variable-rate deals. The key is to be prepared and decisive. If you find a property you love, be prepared with an offer that reflects current market data and your mortgage position. Sellers value confidence, and they are more likely to engage seriously when they know the buyer is mortgage-ready. For buyers, the message is simple: speak to a mortgage adviser early, obtain an Agreement in Principle, and develop a mortgage-ready plan that takes potential interest rate changes into account. If in doubt, just ask, and we can guide you through the process.

For vendors, three guiding principles stand out. Pricing to the market, rather than hoping, is essential, as overpricing remains the primary reason properties sit with little interest. A realistic pricing strategy drives genuine interest and leads to better outcomes even in a softer market. Presentation is another vital lever; small investments in decluttering and decent photography create a sense of confidence towards a purchase and reduce future concerns for buyers. Transparency on additional costs also shortens the sales process and lowers the risk of fall-throughs.

The Cambridge Advantage

Autumn 2025 in Cambridge is a season of readjustment, as the market absorbs higher borrowing costs and more risk-averse buyers. However, our long-term prediction is one of confidence, as Cambridge remains one of the most compelling places to invest in property. For us, as an estate agent who knows the area like the back of our hand, the two principles that stand out are preparation and realism. If you are considering a move this autumn, whether buying, selling, letting or investing, the Cambridge advantage is clear. With the right guidance, you can navigate today’s market confidently and make the most of the opportunities that our beautiful city offers.