Cambridgeshire Property Price Gap at 126%
- House prices in Cambridgeshire are 5.6% higher than one year before.
- House prices in South and East Cambridgeshire set their highest record this spring.
- New builds are up 16% and pre-existing homes are up 3% YoY.
- Land Registry data shows sales volume is still well below normal levels.
- Property prices in Cambridgeshire are just 0.4% behind the peak of November 2022; many districts will break records this summer.
- Cambridge remains the county's most expensive district to buy a home, 126% more costly than Fenland.
- St Ives has the lowest crime rate.
- The City of Peterborough district has the greatest 10-year property price growth. Year-on-year, it's Cambridge.
- Across the East of England, house prices are expected to increase 2.5% through 2025, and 18.5% over the 5 years to 2029 (Savills).
Are house prices going up in Cambridgeshire?
Average house prices across Cambridgeshire have risen 5.6% since the same time last year, outperforming England and Wales, at 3.1% house price growth in the same period.
Average house prices in Cambridgeshire peaked in October 2022 at £342,844 and are now just 0.4% under that peak. We expect many homes in the county to reach their highest prices later this year.
Sales volume slowdown is less severe in Cambridgeshire
February's sales were 9% down on 2024 and 24% down on 2020; the Cambridgeshire housing market is faring better than the national average, down 14% and 28% respectively.
We expect emerging spring data to reflect what we're already seeing at SAM; the market is heating up for a buoyant summer. However, rising inflation and affordability challenges will continue to limit movement in the property market.
Will there be a UK recession in 2025?
The Quarterly Economic Forecast (QEF) predicts the UK economy will grow by 1.3% in 2025 and 1.5% in 2026. Source: British Chambers of Commerce (BCC).
This, however, is well below the pre-pandemic average. NEISR estimate that Britain's poorest households will not recover fully until 2027.
How does the Bank of England affect the West Sussex Housing Market?
Borrowing has been slowly returning to a more affordable level. The May cut to 4.25% means that mortgage rates are already lower, and the base rate will likely fall further in August following our predicted energy price drops.
Prices will steadily increase as the market picks up momentum. Oxford Economics predicts the base rate will fall to 2.5% in 2027.
Are you thinking of buying or selling a property in Cambridgeshire?
South Cambridgeshire has the most active property market YoY
Sales volume across Cambridgeshire is -9% year-on-year (YoY), but South Cambridgeshire property sales are up 8%.
The drop across the county is less extreme than the national average, down by 14% overall. Compared to pre-COVID sales, South Cambridgeshire also comes out on top, just 11% behind February 2020.
Peterborough and Huntingdonshire have the highest actual volume of sales and available property, because they have higher populations. St Neots is a historic market town in Huntingdonshire, just 40 minutes from London by train.
Are houses in Cambridgeshire Expensive?
Average property prices in the county vary vastly by district from £230,620 to £521,024.
Average house prices in Cambridge are highest, at 53% more expensive than the average for Cambridgeshire and 123% higher than the cheapest district, Fenland.
Cambridge is a safe, green city, with rich culture and academic prowess; it's no wonder house prices are high.
Where is the cheapest place to buy in Cambridgeshire?
The most affordable average homes of every type are in Fenland, followed by the City of Peterborough.
Wisbech is a peaceful port and market town on the river Nene in Fenland, and average house prices are relatively affordable at £210,514.
Peterborough is popular with young families and professionals, with desirable satellite towns including Hampton (£285,529), Yaxley (£292,106), and Whittlesey (£267,778).
Record high for property prices in South and East Cambridgeshire
While national average house prices have recovered from their latest dip and are setting new record highs this spring, Cambridgeshire and four of the six districts within it have yet to beat their peaks set in October to December 2022.
East Cambridgeshire is 6% higher than its 2022 peak, and South Cambridgeshire beat its 2022 peak by 1% in March, but fell slightly in April to 1% behind the 2022 peak. a href="/Conveyancing-Solicitors/conveyancing-solicitors-ely" title="Conveyancing Solicitors in Ely">Ely is a cathedral city and 'English Jewel' in the countryside of East Cambridgeshire, on the River Ouse, .
Long-term Cambridgeshire property market investment
Average property prices in Peterborough have the strongest 10-year price growth, despite having the second-weakest growth versus last year.
Cambridge property has the strongest average Year-on-Year growth, despite having the weakest 10-year price growth.
Could this disconnect reflect a change in recent trends?
Has growth in Peterborough slowed, where Cambridge has accelerated, and what will happen next? If you look at the graph below, we can see both cities alternate for which has the strongest with alternating leaders. It seems that Cambridge's recent lead follows a strong lead for Peterborough over the last ten years, but Cambridge was firmly ahead for the ten years prior. So, if you are looking for a quick flip, perhaps Cambridge is your best option, but for longer-term investment, these two cities are both strong choices.
New homes in Cambridgeshire are now 40% more expensive than existing properties
New houses cost more. However, the highest recorded average difference in Cambridgeshire was 27%, until January when it reached 32%. The latest data released from the Land Registry shows it reached a staggering 40% in February.
Interestingly, other regions are being affected to greater extremes, with new builds in the North East an eye-watering 118% dearer than existing homes.
The average cost of a new build in Cambridgeshire soared by 16% in 12 months.
This unprecedented increase is likely caused by increased building costs, developers building larger homes for greater profit margins, and the squeeze on available development land.
If you exclude newly-built properties, you can see that price growth on existing properties in Cambridgeshire has been fairly static or negative since the peak in 2022. This is great news for hopeful first-time buyers looking to buy a pre-existing home and are still saving for a deposit, as existing property in Cambridgeshire is only 3% higher than 12 months prior, almost in line with general inflation.
Where are the safest places to live in Cambridgeshire?
St. Ives and Chatteris are the safest places to live in the county, which is already safer as a whole than the national average. Ely, Orton Waterville, Soham, Yaxley, St Neots, and Whittlesey all fall below the average for the county, and well below the national average for the country at large.
Crime rates will affect your insurance premiums and potential rental yield and may affect your peaceful enjoyment of the property.
Should I buy a house in Cambridgeshire?
Cambridgeshire is a top choice for homeowners
- Commuter proximity to London and Stanstead Airport.
- Resilient property market.
- 1-2 hours drive from beautiful east coast beaches.
- Excellent transport links.
- 4-5% rential yields.
- Employment opportunities in manufacturing, agri-tech, bioscience and healthcare, pharmaceuticals and digital technologies.
House prices are ever rising, and the cost of borrowing will likely fall further in August, as long as energy prices fall as expected this summer. If you can afford to buy before house prices increase further, you'll likely be able to switch to an even more affordable mortgage rate in 2027; by this point, the value should have risen a few per cent, and you'll have built some equity by making your mortgage payments.
Across the East of England, house prices are expected to increase 18.5% over the 5 years to 2029
SavillsIf you are renting and can afford to buy at the current rate of interest, this may be a much more desirable option than saving for a bigger deposit, as rents are still rising, whereas mortgage rates are likely to fall.
However, if you are stretching your budget to buy, consider saving a bit longer or opting for a more affordable borough. If the base rate rises again, you may be unable to keep up with your monthly repayments when your fixed rate ends.
Worse yet, if prices fall, you could end up in negative equity, owing more money than your home is worth. Buying a home with a mortgage always comes with risks. Your home may be repossessed if you do not keep up repayments on your mortgage.
If you are ready to buy a house in Cambridgeshire or the surrounding area, we can handle your purchase with a dedicated SAM Conveyancing Consultant to manage your transaction alongside one of our hand-selected panel solicitors.
We're set for a buoyant summer with more homes for sale and more affordable mortgages.
Andrew Boast FMAAT MIC | CEO and Author | SAM ConveyancingSources: Latest data from - Gov.UK, Bank of England, UK House Price Index, Savills.
Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
Without Killing Anyone
This book could be the difference between every mover’s dream, buying and moving into your new home stress free, or, stress, missed deadlines, legal disasters, building defects, and possibly the collapse of the whole transaction. (Costing you a small fortune, a head full of grey hairs, and, driving you to threaten the life of your solicitor, lender, co-owners, family, partner, or some combination of all five).
With more than two decades’ experience in the conveyancing sector and over 50,000 successful client moves under his belt, Andrew shares insider tips and advice to empower you as a buyer, giving you the tools to make the best decisions for your circumstances and ease the chaos.
Available on Amazon | Kindle | Paperback
