Sales Market - October 2025

Cambridge Residential Sales Market: What to Know in 2025

Cambridge remains one of the UK’s most dynamic and competitive property markets. Whether you’re thinking of selling or buying, understanding current trends can give you a real advantage. At HPS Property Solutions, we stay on top of the changes—here’s what’s happening right now in the Cambridge residential sales market.

📊 Current Market Snapshot

• The average house price in Cambridge in July 2025 was approximately £493,000, reflecting a modest year-on-year increase of 1.4 %. Office for National Statistics

• Over the same period, average rents in Cambridge rose to about £1,773/month, up 5.2 % year-on-year. Office for National Statistics

• In nearby South Cambridgeshire, the average house price is about £424,000, showing growth of roughly 2 % year-on-year. Office for National Statistics

• Sales volumes have slipped somewhat — in the past 12 months, about 4,900 properties transacted in Cambridge, which is around an 8 % drop year-on-year. Plumplot

• Cambridge continues to struggle with supply constraints: many homes listed are already under offer or sold subject to contract, making it a “hot” seller’s market. Financial Times

• Some areas show more variability: for example, in the CB1 1 postcode, prices have declined in the past year (‑7.4 %) after adjusting for inflation. Housemetric

🔍 What’s Driving Demand (and Pressure)?

1. High Demand, Low Supply
   Cambridge’s strength as a tech, research, and university hub continues to attract buyers, especially professionals looking for quality homes close to work. Yet, housing delivery has lagged behind demand, pushing prices upward. Financial Times+1

2. Premium Areas & Price Gaps
   Some of the most sought-after neighborhoods—like near the Biomedical Campus or close to central amenities—see bidding wars regularly. Many buyers are willing to pay over the asking price for the right property. Financial Times

3. Affordability Challenges
   Even with price growth slowing, Cambridge remains expensive compared to local wages. There’s a clear “affordability gap,” especially for first-time buyers. Varsity Online+1

4. Interest Rates & Mortgage Costs
   Mortgage rates and borrowing capacity still play a key role. Many buyers are more cautious now, especially when moving costs (e.g. stamp duty) and mortgage affordability are under pressure.

5. Local Variations
   The market is not uniform. Some postcodes (e.g. CB1) are softening, while others (CB4, outskirts) remain stable or are slowly appreciating. Housemetric+2Housemetric+2

🏘 What It Means if You’re Selling — Or Thinking of Selling

• You may have an advantage
  In many cases, sellers are in a good position. Limited supply and consistent demand give you leverage—especially if your property is well presented, priced correctly, and marketed effectively.

• Pricing is key
  Overpricing can stall interest. The data shows that even in a busy market, homes may sit or require reductions if expectations are too aggressive.

• Quality & presentation matter more than ever
  Buyers are selective. Homes that are in good condition, well staged, and have no major hidden issues tend to rise above the competition.

• Location still plays a huge role
  Proximity to amenities, schools, transport links (especially near the new railway stations), and the Biomedical Campus all influence buyer preference.

• Marketing is essential
  To attract the right buyers, a strategy that includes professional photography, strong listing exposure, online portals, and local reach is non‑negotiable.

🔧 What Sellers Should Be Doing Now

1. Obtain a solid valuation
   Use recent comparable sales and local market insight—not just automated tools.

2. Prepare your property
   Minor repairs, decluttering, ensuring all safety certificates are in place—these reduce buyer hesitation.

3. Set the right price tier
   Consider how your property fits within local price bands and where value is being found nearby.

4. Targeted marketing
   Use high-quality visuals, floor plans, virtual tours, and reach the right audiences (families, professionals, etc.).

5. Be responsive & flexible
   Viewing flexibility, prompt replies, transparency—all these help secure offers.

6. Work with an agent who understands Cambridge
   Local knowledge—street-level insights, buyer demographics, and network—is a differentiator.

📈 Outlook: What’s Next in 2025–2026?

Many analysts expect moderate growth in Cambridge over the next 12–18 months, possibly around 3–5 %, dependent on interest rates, wage growth, and supply improvements. Centrick Invest

However, the market could see:

• More volatility in certain postcodes or property types.

• Softening in premium segments, if buyers become more cautious.

• Greater segmentation—some houses will still outperform if they tick more boxes (location, condition, amenities).

• Possible upward pressure if infrastructure projects (e.g. new stations) boost local connectivity.

Why Work with HPS on Your Sale?

At HPS Property Solutions, we combine local expertise, transparent fees, and hands-on service to help you navigate this evolving market with confidence. We’ll help you:

• Understand your home’s true value

• Present it in the most attractive way

• Market it to the right buyers

• Negotiate offers that work for you

• Guide you every step until completion

Ready to make a move? Contact us today, and let’s explore how we can get the best outcome from this thriving—but competitive—Cambridge market.