There has certainly been no shortage of news or uncertainty this summer. A change of Prime Minister, ongoing global conflicts, changing mortgage rates and an Autumn Budget still to come have all given buyers, sellers and landlords plenty to think about. Against that backdrop, the Cambridge property market has continued to show encouraging resilience.
July and August have been busy for us across both sales and lettings, with activity remaining consistent and some excellent results being achieved for our clients. People are still moving, good properties are attracting interest and committed buyers and tenants remain very much in the market.
Nationally, the picture is more mixed. Rightmove's latest House Price Index reports that the average asking price of a newly listed property fell by 2.0% in August to £364,999, the largest August fall since 2018. Asking prices are now 1.0% lower than a year ago, with the South of England experiencing greater downward pressure than northern regions.
There is, however, another side to the figures. Buyer demand has risen by 5% since the change of Prime Minister on 20 July. While it is far too early to attribute any lasting market movement to a new government, greater clarity around future property taxation and economic policy would undoubtedly be welcomed by anyone considering a move. Mortgage costs remain an important factor. The average two-year fixed rate is currently 5.09%, up from 4.95% last month, while continued international uncertainty is affecting financial markets and the wider economic outlook.
What does all of this mean in Cambridge?
Probably something rather less dramatic than the headlines suggest. Cambridge continues to benefit from many of the characteristics that have supported its property market for decades: world-class education, internationally recognised employers, a strong local economy, and a persistent shortage of good-quality homes in the locations people most want to live. But buyers do have more choice, and that makes getting the price right from the outset increasingly important.
The strongest properties are still selling well. Those that are well presented, sensibly priced and marketed properly can generate good interest quickly. Properties launched too ambitiously are much more likely to lose that important early momentum and require a price adjustment later. The same principle applies across the Cambridge villages. Demand remains strong in many locations, but markets can vary considerably from one village, road and property type to another. Understanding those differences, rather than relying on a national headline or an online average, is increasingly important.
So, as we head towards the autumn market, our view is positive but pragmatic. There are economic and geopolitical uncertainties that none of us can control, but there are still plenty of motivated people looking to move. Our job is to concentrate on the things we can control good advice, accurate pricing, excellent presentation, intelligent marketing and, ultimately, securing the best possible result for our clients.
