Rental yields in Cambridge currently average between 4.1% and 5.8% gross, depending on location, property type, and proximity to major employers. Across the wider East Anglia region, towns such as Newmarket, Burwell, and Downham Market offer investors varying entry points and yield profiles that reflect local demand. If you are considering a buy-to-let purchase in the area, our letting service for landlords can help you understand what your property could realistically achieve in rent.
Net yields, after accounting for management fees, maintenance, and void periods, typically sit around 3.2% in Cambridge, according to early 2026 data. That gap between gross and net figures is worth understanding before you commit to a purchase.
What Is Rental Yield and Why Does It Matter?
Rental yield is the annual rental income generated by a property expressed as a percentage of its purchase price. It is one of the most important measures for any landlord or property investor because it tells you how much income your investment produces relative to its cost.
There are two figures to be aware of. Gross yield is calculated before deducting running costs. Net yield accounts for expenses such as management fees, repairs, insurance, and periods when the property is empty. Net yield gives a more accurate picture of what you will actually take home.
How Is Gross Rental Yield Calculated?
The formula is straightforward: divide the annual rental income by the property purchase price, then multiply by 100. For example, a property purchased for £300,000 that achieves £1,200 per month in rent generates a gross yield of 4.8%.
What Are Rental Yields Like in Cambridge?
Cambridge is one of the most researched buy-to-let markets in the UK. Average gross yields across the city range from 4.1% to 5.8%, with the highest returns found in areas close to major research and employment hubs. According to data from Property Investments UK, southern postcodes near the Cambridge Biomedical Campus have recorded yields approaching 4.7%.
The average monthly rent in Cambridge stood at around £1,763 per month in early 2026, based on Cambridge City Council private rented housing data cited by Investropa. Against average purchase prices of approximately £510,000, that produces a gross yield of roughly 4.1%.
Net yield in Cambridge sits at around 3.2% once running costs are deducted, according to the same Investropa analysis. Property management fees in Cambridge typically run between 10% and 15% of monthly rent plus VAT, with an additional one-off tenant placement fee of 8% to 12% of the first year’s rent.
Which Parts of Cambridge Offer the Best Rental Returns?
Location within Cambridge makes a significant difference to yield. Areas close to the Cambridge Biomedical Campus, Cambridge North station, and the city centre research institutes attract a steady flow of professional tenants who tend to stay for longer periods and pay higher rents.
The opening of Cambridge South Station in June 2026 is expected to increase rental demand in the southern fringe of the city, linking the Biomedical Campus directly to London King’s Cross with half-hourly fast trains. Villages like Great Shelford and Trumpington are likely to benefit from improved accessibility for London commuters.
How Do Rental Yields Compare Across East Anglia?
East Anglia offers a range of rental yield profiles depending on the town or village you invest in. Cambridge provides strong tenant demand and relative market stability, while smaller towns offer lower entry prices that can improve yield calculations.
The table below summarises approximate gross yield ranges and the key sources of tenant demand across the main locations served by Morris Armitage.
| Location | Approx. Gross Yield | Key Tenant Demand |
| Cambridge (city) | 4.1% to 5.8% | Students, researchers, tech professionals |
| Cambridge South fringe | Up to 4.7% | Biomedical campus, NHS, science sector |
| Newmarket | Typically higher entry than Cambridge villages | Equestrian industry, Cambridge commuters |
| Burwell | Village value opportunity | Cambridge commuters, families |
| Downham Market | More affordable entry point | Local workers, families, commuters |
Note: yield ranges are indicative based on available market data and will vary depending on the specific property, its condition, and current rental demand at the time of purchase. Always seek an up-to-date rental appraisal before committing to a buy-to-let investment.
What Makes Newmarket an Interesting Buy-to-Let Market?
Newmarket has a rental market shaped by its international racing industry. The town draws a mix of stable, long-term tenants including equestrian professionals, stable staff, and employees at the British Horseracing Authority’s national headquarters. It also attracts Cambridge commuters who want more space for their money while remaining within reasonable travelling distance of the city.
Property prices in Newmarket are generally more moderate than in Cambridge, which can improve yield calculations for investors. The rental market is also supported by the town’s growing profile as a destination for professionals associated with the broader equestrian economy.
What Are Rental Yields Like in Burwell and Downham Market?
Burwell sits on the Cambridge commuter belt and offers a village lifestyle that appeals to families and professionals who work in Cambridge but prefer rural surroundings. Entry prices are lower than in the city, which can mean stronger yield percentages for investors.
Downham Market is more affordable still and provides a value-led entry point for first-time landlords. Tenant demand here comes primarily from local workers and families rather than the graduate and research professional pool that defines the Cambridge market.
What Affects Rental Yield in East Anglia?
Several factors influence whether a property in East Anglia will deliver strong rental returns. Understanding them before you purchase is important.
- Transport links: proximity to train stations with Cambridge or London services consistently supports stronger rents and lower void periods
- Employer proximity: locations near large employers such as the Cambridge Biomedical Campus, Addenbrooke’s Hospital, or ARM Holdings attract stable professional tenants
- Property type: two and three-bedroom properties tend to offer a balance of strong rental demand and manageable entry costs in this region
- EPC rating: from 2025, landlords are required to meet energy efficiency standards. Properties with higher EPC ratings attract better tenants and avoid costly compliance risks
- Property management: engaging a local letting agent with knowledge of the specific area helps reduce void periods and protects long-term yield
Is Buy-to-Let in Cambridge and East Anglia Still Worth It in 2026?
The wider UK buy-to-let market has faced pressure from higher mortgage rates and tax changes in recent years, but the rental sector in East Anglia remains active. According to Pegasus Insight’s Q3 2025 research, average gross rental yields across the UK reached 6.6%, the highest level in a decade. Cambridge’s figures sit below that national average due to its high property values, but the city offers stronger capital appreciation prospects over the long term.
The Morris Armitage buy-to-let guide for East Anglia 2026 notes that East Anglia’s economy is projected to grow by 2.1% annually between 2024 and 2026, driven largely by Cambridge’s technology and life sciences sectors. This growth underpins rental demand and provides a strong foundation for long-term investment.
For investors who are weighing yield against capital growth, Cambridge and the surrounding commuter towns present a different calculation to high-yield but slower-growth locations elsewhere in the UK. A lower gross yield in Cambridge may still represent a stronger total return over a ten-year period if property values continue to outperform the national average.
What Costs Should Landlords Factor In?
Understanding net yield requires accounting for all recurring costs. In Cambridge and across East Anglia, the main costs to budget for include:
- Letting agent management fees: typically 10% to 15% of monthly rent plus VAT
- Tenant placement or introduction fees: generally 8% to 12% of the first year’s rent
- Void period buffer: a vacancy allowance of 3% to 5% of annual rental income is prudent for tenant changeovers
- Mortgage interest: buy-to-let mortgage rates have remained elevated compared to pre-2022 levels, making stress testing essential
- Stamp duty: since April 2025, the additional homes surcharge increased, adding to upfront purchase costs for investors
- Maintenance and compliance: ongoing EPC compliance, gas safety certificates, and general upkeep
Ready to Explore Buy-to-Let in East Anglia?
Whether you are a first-time landlord or an experienced investor looking to expand your portfolio, our team can provide a free, accurate rental appraisal for properties across Newmarket, Cambridge, Burwell, and Downham Market. Get in touch with Morris Armitage today to discuss your buy-to-let goals and find out what rental income your property could realistically achieve.