Are Cambridge House Prices Falling?

House prices are ever-changing, and it’s no different in Cambridge. The house prices in Cambridge dropped in the last 12 months — whether that’s good or bad depends on whether you’re buying or selling.  As a homeowner, this can be a worrying trend. Having to sell at a far lower price than the initial purchase price can be a severe blow. 

Conversely, for potential buyers, this could be a good time to purchase a property. That is with the belief that the price will go up in the future. However, getting a clearer idea as to what is affecting property prices can be beneficial for everyone involved. Let’s take a look at some of the reasons why house prices are falling in Cambridge.

How have house prices changed over the past year? 

The overall average price for houses sold in Cambridge over the last year was £467,300. The cost of homes in the city has fallen by 0.6% over the last year, according to Zoopla’s House Price Index (HPI). Despite house prices falling, the city is still the second most expensive place to buy a house in the UK, after London, where the average house price is £526,100.

Meanwhile, house prices across England have risen by 2.2% over the last year. This is quite significant when comparing Cambridge’s falling house prices. The question is; is this an anomaly for the city?

A look back at Cambridge’s housing market

If we look back over the last ten years, Cambridge’s housing market has generally remained stable. In 2012, the average house price was £291,718 while the average price in 2022 had risen to £453,874. This represents a steep increase in property prices that aligns with the rest of the UK due to the impact of the financial crisis as well as a spike since COVID-19.

So why is there a slump in Cambridge house prices now? Zoopla suggests that house prices are rising in cities with below-average house prices where the impact of higher mortgage rates is less pronounced. Cambridge’s already high prices combined with current high mortgage rates could therefore be the explanation. Zoopla expects this north/south divide in house price growth to continue for the remainder of 2024 as incomes and house prices re-align across the country.

What are the perks of living in Cambridge?

From the meandering waterways to the prestigious university — not to mention all the history — Cambridge has plenty to shout about — Kings College Chapel alone makes the town worth a visit, as anyone who has a house there will know.

The city is famous for its universities, namely The University of Cambridge — which is one of the oldest, most famous and highest-ranking universities in the world — and Anglia Ruskin University, which is one of the most populous universities in England. There are plenty of great shops, restaurants, museums and events as well as beautiful green spaces with the picturesque River Cam flowing through the city.

Cambridge has a thriving job market with a booming tech industry as well as great connectivity to London and other major cities. If you’re looking for a blend of historical charm and modern amenities, Cambridge has it all.

Looking to sell?

However, for those looking to sell a house fast in Cambridge, SellHouseFast.co.uk is available to act as cash house buyers. We buy any house, no matter what the condition, the type, or even the value of the property, we can make a cash offer to purchase your property.