Updated October 2026. This update uses the latest official figures available on 13 October 2026: HM Land Registry's UK House Price Index (UK HPI) for July 2026, the Office for National Statistics (ONS) private rent figures for August 2026, and the Bank of England's September 2026 interest rate decision and August 2026 mortgage statistics.
Cambridge house prices were flat over the past year. The average price in the city was £475,151 in July 2026, unchanged on July 2025, and 8.9% below its November 2022 peak of £521,404. Over the same year prices rose 2.2% in South Cambridgeshire and 1.1% across England. Cambridge rents are still rising, but more slowly than a year ago, and the average rate on new mortgages went up in August even though the Bank of England has held Bank Rate at 3.75% since December 2025.
Below are the figures, where they come from and what they can and cannot tell you. None of them predicts what happens next.
The UK HPI average prices for July 2026, published on 16 September 2026, were:
The flat year in Cambridge came after a long run of falls. The city's average was lower than a year earlier in every month from May 2025 to June 2026, by between 0.2% and 4.5%. July 2026 was the first month since April 2025 without an annual fall.
Flats were the only property type in Cambridge with lower prices than a year earlier.
First-time buyers in Cambridge paid an average of £397,573 in July 2026, down 0.2% on a year earlier. Buyers who had owned a home before paid £599,709, up 0.3%. Buyers using a mortgage paid £470,432 on average (up 0.1%) and cash buyers £487,733 (down 0.3%).
On the UK HPI, the average price in Cambridge rose from £436,907 in July 2016 to £475,151 in July 2026, an increase of 8.8%. Over the same ten years the England average rose by 34.6% and South Cambridgeshire by 23.2%. In July 2016 the Cambridge average was about twice the England average. By July 2026 it was about 62% higher.
The average flat price in the city was lower in July 2026 (£298,575) than in July 2016 (£306,564).
The Cambridge average peaked at £521,404 in November 2022, and July 2026 was 8.9% below that peak. Taking July of each year:
England followed a different path. On the provisional July 2026 figure, the England average was the highest the index has recorded.
South Cambridgeshire, the district that surrounds the city, has outperformed Cambridge itself on these figures, both over the latest year (up 2.2% against 0.0%) and over ten years (up 23.2% against 8.8%). Its July 2026 averages were £636,197 for detached houses, £403,783 for semi-detached, £329,171 for terraced and £199,495 for flats and maisonettes. As in the city, flats were the only type to fall over the year, by 0.9%.
A district average hides a wide range. For sold prices ward by ward, see our guide to which part of Cambridge is nice to live in, and for individual villages, our Cambridge area guides.
To check what an individual home sold for in England or Wales, you can search HM Land Registry's sold price records through GOV.UK.
The ONS Price Index of Private Rents put the average private rent in Cambridge at £1,805 a month in August 2026, up 1.8% on a year earlier. In August 2025 annual growth had been 5.2%. In South Cambridgeshire the average was £1,408, up 3.4%, against £1,459 and 4.0% for England.
Over ten years the Cambridge average rose from £1,311 in August 2016, an increase of 38%, against 45% for England. Rents have therefore risen much faster than Cambridge house prices over the decade. The index covers both new and existing tenancies, so it is not a measure of asking rents on new lets, and the ONS publishes it as official statistics in development.
Taking the August 2026 average rent and the July 2026 average price gives a gross yield of about 4.6% before costs. The two measures cover different sets of homes, so treat this as an illustration. Our guide to the best areas in Cambridge for property investment breaks this down by property type.
The Bank of England held Bank Rate at 3.75% on 17 September 2026, with CPI inflation at 3.1% in August against its 2% target. Its next decision is due on 5 November 2026. Bank Rate was 5.25% from August 2023 to August 2024, was then cut in steps, and reached 3.75% on 18 December 2025. It has not changed since. The decision was not unanimous: three of the nine members of the Monetary Policy Committee voted to raise Bank Rate to 4%. In its September Monetary Policy Summary the Bank said conflict in the Middle East had pushed energy prices up further and that CPI inflation "is likely to rise further over coming quarters".
Bank Rate affects other interest rates in the economy, but mortgage rates do not move in step with it. The Bank's Money and Credit figures show that the effective interest rate on newly drawn mortgages, which is the rate actually paid, rose to 4.60% in August 2026 from 4.45% in July. For August 2025 the Bank reported 4.26%. So although Bank Rate is lower than a year ago, the average rate on new mortgages is higher. The average rate across all outstanding mortgages was 4.00% in August 2026.
These are UK averages across all new mortgages, not the rate any one lender offers. If you are buying or remortgaging, our independent mortgage advice page lists two independent brokers we recommend, who can compare what is available for your circumstances.
Mortgage approvals for house purchase, which the Bank describes as an indicator of future borrowing, fell to 54,900 across the UK in August 2026, from 55,900 in July, and were below the average of around 60,100 for the previous six months. In August 2025, on the Bank's revised figures, there were about 65,400, so approvals were about 16% lower than a year earlier. Approvals for remortgaging with a different lender were 34,000 in August 2026.
The statistics cannot answer that for you, and nobody can reliably time the market. What they do show, as of October 2026, is this:
For an individual decision, the price of the specific home matters more than the city average. Compare asking prices with what similar homes nearby actually sold for, work out your full buying or selling costs, and get a mortgage agreement in principle before you offer. If you are thinking of selling, a local property valuation will set your home against recent sales in your street rather than the district average. If you are weighing Cambridge against a move to the capital, our comparison of whether it is cheaper to live in London or Cambridge uses the same official figures.
This article is general information based on official statistics, not financial advice. Speak to a mortgage adviser or financial adviser about your own circumstances.
Not in the latest figures. The UK HPI average for Cambridge was unchanged in the year to July 2026, at £475,151. Before that, it was lower than a year earlier in every month from May 2025 to June 2026, and it is still 8.9% below its November 2022 peak.
£475,151 in July 2026, on HM Land Registry's UK HPI. By type, the averages were £979,438 for detached houses, £603,225 for semi-detached, £493,851 for terraced and £298,575 for flats and maisonettes.
By 8.8%, from £436,907 in July 2016 to £475,151 in July 2026. Over the same period the England average rose 34.6% and South Cambridgeshire 23.2%.
Not on the latest figures. Bank Rate has been 3.75% since December 2025, and three of the nine Monetary Policy Committee members voted to raise it in September 2026, but the effective rate on newly drawn mortgages rose to 4.60% in August 2026, from 4.45% in July and 4.26% reported for August 2025.
The ONS average private rent in Cambridge was £1,805 a month in August 2026, up 1.8% on a year earlier. Averages ranged from £1,256 for one bedroom to £2,656 for four or more bedrooms.
The August 2026 UK HPI and the next ONS rent figures are due on 21 October 2026, the Bank of England's next Money and Credit release on 29 October 2026, and its next Bank Rate decision on 5 November 2026.
