Property View June 18

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What does the future hold for the Cambridge rental market? The Cambridge rental market is seen as very buoyant, a place where rents increase and demand always outweighs supply. Is this still the case? Over the past 10 years, buy-to-let investors have flocked to Cambridge in the expectation of strong rents and impressive capital growth, driven by huge tenant demand and lack of supply. However, while rents have remained strong over the past year, we have seen a slow down in the rates of capital appreciation. Investors chasing a fast buck are likely to be disappointed. This doesn’t mean the Cambridge BTL market is broken, it just means a short-term investment strategy is no longer a viable option. 50
According to the most recent Home Track report (February 20<strong>18</strong>) values in Cambridge have dropped 1.5% year on year, but will this have an affect on the rental market? In the immediate short term, likely not, but if this becomes an ongoing trend, those property owners considering selling up may hold off until prices see an increase. This in turn, will affect the stock of properties to purchase, possibly pushing people to rent until they find their ‘dream home’ but also pushing buy to let investors into purchasing while prices are down. The average rent in the East of England, at the end of 2017 was £909pcm, in Cambridge this was £1202pcm (Landbay, Rental Index Report). Cambridge is still a microclimate, offering a unique setting for the housing market. So why does Cambridge stand out and what part do Landlords need to play in keeping these rents at this level? Over the next three years, around two million sq ft of office and laboratory developments will be delivered in the Cambridge market. This is on top of the multinational companies, such as Astrazeneca, Google, and Microsoft who have already called Cambridge their home. The increased investment in infrastructure is also increasing the rental demand as more areas of the City become popular for commuters; such as the Cambridge North train station, improvements to the A14 between Cambridge and Huntington and proposed plans for a Cambridge South train station. New developments such as Ninewells and Eddington, together with some impressive high spec refurbishments of existing stock, has improved the overall standard of properties in Cambridge. Older properties can start looking more dated in comparison to the newer developments so keeping up with maintenance is key. Larger companies in the City are attracting affluent young professionals and families who expect their homes to be well-presented and maintenance free in exchange for the high rents they are being asked to pay. Landlords must keep up with these expectations to ensure strong rents continue. As Letting Agents, we need to ensure our clients’ property stands out from others on the market, giving the best possible chance of achieving the expected rent level, with a minimum void period. “ Over the next three years, around two million sq ft ” Looking ahead, we expect clearer answers to the key questions. Will the changes to stamp duty for first time buyers reduce the young professional renters or the length in which they rent? Will the changes with tax relief on mortgage payments reduce the buy to let investors and therefore rental stock, ultimately leading to an underpinning of rental prices as supply drops but demand remains steady? Will the uncertainty with Brexit hold people back in buying and push them to rent until the landscape is more certain? Only time will tell, but what we do know is the Cambridge market continues to need supply to meet the demand. This supply just needs to be of a higher standard, to meet the increased expectations of tenants.check before you allow potential tenants to come round. 51
Page 1 and 2: PROPERTY VIEW June 2018
Page 3 and 4: Welcome to the Summer edition of ou
Page 5 and 6: At Redmayne Arnold and Harris we pr
Page 7 and 8: Hills Road Guide £445,000 A spacio
Page 9 and 10: Elsworth Guide £2,750,000 An almos
Page 11 and 12: ALL YOU NEED IS A 5% DEPOSIT If you
Page 13 and 14: 4 6 5 7 4 If the sun isn’t stream
Page 15 and 16: 15
Page 17 and 18: Sheds are no longer simple spaces t
Page 19 and 20: Swavesey Guide £240,000 A modern t
Page 21 and 22: 21
Page 23 and 24: Impington Guide £1,150,000 An indi
Page 25 and 26: Longworth Avenue Guide £650,000 A
Page 27 and 28: Great Chesterford Guide £545,000 A
Page 29 and 30: Girton Guide £650,000 A stunning 1
Page 31 and 32: STATION ROAD HISTON NEW BRAND NEW
Page 33 and 34: Chesterton Guide £750,000 A stunni
Page 35 and 36: READY FOR OCCUPATION EDITHA HOUSE 0
Page 37 and 38: Whether er you choose the full mana
Page 39 and 40: Comberton £1,799 pcm* 4 bedrooms 2
Page 41 and 42: Kimberley Road £2,600 pcm* 4 bedro
Page 43 and 44: NEW Clarendon Street £1,450 pcm* 1
Page 45 and 46: 3 Think like a tenant. Now is the t
Page 47 and 48: Norwich Street £1,325 pcm* • 2 b
Page 49: Herbert Street £1,650 pcm* • 4 b
Page 53 and 54: Trumpington Road £1,950 pcm* • 2
Page 55 and 56: Petworth Street £1,250 pcm* • 2
Page 57 and 58: Suez Road £1,450 pcm* • 2 bed mi
Page 59 and 60: OTHER SERVICES NEW HOMES We offer a

Property View June 18

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