Investing in Cambridge’s buy-to-let market has a number of advantages for investors wishing to find an alternative to the stock market, especially during a time when the economy is more volatile.
The most obvious benefit of investing in a buy-to-let is the rental income you’ll receive, which would cover your mortgage repayments while also providing you with some additional capital. Cambridge offers some unique advantages over other locations making it a great location to invest.
- High demand for residential property
The limited supply and high demand for property in Cambridge mean house prices here are some of the highest in the UK. The average property price in April 2022 in Cambridge was £430,000, around £100,000 more than the UK average. Cambridge house prices have risen by 85% since the financial crisis, according to Hometrack. This growth in property prices is the greatest in the UK, including London. However, this does not eliminate the possibility of finding affordable, low-cost property investments in Cambridge. Cambridge flats begin at roughly £140,000, according to Rightmove and Zoopla. Due to Cambridge’s location and prestige, it is projected that housing prices will continue to rise steadily making it a good investment location.
- Exciting city
This high demand is also reflected in rental prices. Cambridge is a vibrant city offering lots of restaurants, theatres and parks. It is a great city to raise a family, as it is home to some of the top schools in the UK. Moreover, The University of Cambridge is located here and is constantly rated among the top five best universities in the world. This student population puts a lot of demand on the rental market. Cambridge student rents can be as high as £1,400 per month, which is significantly higher than the national average (Rightmove).
Cambridge retains many of its graduates and many large companies have offices here. Cambridge has also become known as the science and innovation capital of Europe. This all benefits Cambridge’s housing market as the city attracts people from all over.
- Great transport connections
Cambridge is very easy to get to by car with access to the A14 and M11. Moreover, the Thameslink train makes central London less than 50 minutes away. The East-West Rail project which will connect Cambridge with Milton Keynes and Oxford is in the works and should also boost property prices when it becomes available.
Cambridge is expected to continue seeing strong demand for property and this will be reflected in the house price and rental growth. It is recommended that investing in properties that are walkable or cycling distance (many Cambridge residents cycle) of the city centre, the rail line, the university, or a large company will easily find tenants and so make a great buy-to-let investment.
If you are interested in investing in a buy-to-let please get in touch.
At CI-property, we take this data into account when offering investment opportunities. Our properties in Manchester, Nottingham and Birmingham are perfect for those looking to invest in the UK. So be sure to check them out today for good rental income and property growth.