Cambridge is one of the most sought-after locations in the UK, with its vibrant mix of culture, history, and excellent amenities. Whether you’re a first-time buyer or you’re weighing up the benefits of renting versus buying, making an informed decision is crucial. In 2024, the Cambridge property market continued to evolve, so let’s explore the key considerations when deciding whether to rent or buy in this wonderful city.
Renting in Cambridge: Flexibility and lower upfront costs
For many, renting in Cambridge remains an attractive choice, particularly for first-time buyers who may find it difficult to get on the property ladder due to high property prices. As of September 2024, the average house price in Cambridge stands at £497,000, and for many, the costs of purchasing a home can seem out of reach—especially if you’re just starting to save or you have limited savings for a deposit.
Living in a rented property allows you to enjoy the flexibility of living in the city without the heavy commitment of property ownership. Renting also comes with fewer upfront costs—no large deposit, no stamp duty, and no need for the maintenance costs that come with owning a property. Renting can be an excellent way to live in Cambridge while you figure out if the city is the right fit for your long-term lifestyle.
Another advantage of renting is the ease of moving. If your job or personal circumstances change, it’s much easier to move when renting, rather than dealing with the complexities of selling a property. For young professionals, students, or those who are just starting out in their careers, renting can offer the freedom to explore different areas of Cambridge or test out the lifestyle before committing to buying a home.
However, one of the challenges of renting is that monthly payments do not build equity in a property. Over time, renting means you’re not gaining ownership of an asset, and rent prices in Cambridge have steadily risen. The average rent for a property in Cambridge has increased to £1,715 per month as of October 2024, making it an expensive option for some renters, especially compared to the long-term financial benefits of owning a property.
Buying a property in Cambridge: Investment and stability
For those who have been saving for a deposit or have been renting for a while, buying a property in Cambridge may feel like the next logical step. While the initial costs of buying—such as a deposit, stamp duty, and other fees—can add up, there are significant long-term benefits to homeownership, especially as property values in Cambridge have steadily increased over the years.
The Cambridge property market has shown resilience, with the average house price increasing by 5.7% in the past year alone. This means that owning property in Cambridge could potentially provide a good return on investment, as the value of your home may continue to rise.
One of the most appealing aspects of buying is the opportunity to create a home that reflects your personality and preferences. You can renovate, decorate, and improve your space as you see fit!
However, the decision to buy also comes with challenges. As a first-time buyer, it’s essential to assess whether you can afford the upfront costs of purchasing a property, which typically include a 10-15% deposit on a home, along with stamp duty and solicitor fees.
Renting to Test the Waters
If you’re uncertain about whether to buy or rent, consider renting first as a way to “test” living in Cambridge. Many people rent in the city to get a feel for its neighbourhoods, amenities, and lifestyle before making a big commitment to buy. Renting gives you the flexibility to explore areas, determine what works for your lifestyle, and understand the true cost of living in Cambridge—an important step before diving into property ownership.
For example, areas like the City Centre, Chesterton, or Trumpington may offer a variety of property types and price points that could align with your needs. Renting for a year or two could help you decide where you’d like to buy in the future and understand the dynamics of each neighbourhood.
To Buy or Rent in Cambridge
The decision to rent or buy in Cambridge largely depends on your personal circumstances, financial situation, and long-term goals. Whichever route you choose, working with an experienced estate agent who knows the Cambridge market is essential. At Bush & Co, we’re here to guide you through the process, whether you’re buying or renting. If you’re ready to explore your options in Cambridge, get in touch today—we’d love to help you make the right move for your future.
