22 APRIL 2015
We’ve seen it coming for a while but the latest statistics from Savills reinforces the popularity of Cambridge as a destination of choice for property buyers and confirms that a shortage of stock makes finding a home that much more difficult.
The city has outperformed most places in the country, recovering its 2007 peak just four years later whilst much of rural Britain was still (and is still) playing catch up. Since then property prices haven’t looked back. Values in the city are now 30.5% above those in October 2011 and in a twelve month period to January 2015 prices rose by 16.9%. This was comparable with London which saw a 17% increase.
Interestingly the proportion of professional and managerial jobs in Cambridge is more than twice the UK average. Contributing to a buoyant employment market and a strong local economy education has long been Cambridge’s highest employer but the city has also become a magnet for technology and bio-science industries attracting companies such as AstraZeneca and its 2,000 new employees.
Alongside this, urban living has taken preference over the rural experience particularly when there are good links into London. With a fast commuter train the number of Cambridge residents working in the capital is expected to rise over the next few years. Cambridge, with all its good links and cultural opportunities, is also a popular choice for downsizers.
The number of sales of homes over the £1 million has tripled over the last five years with 66 sales in this category compared to 21 in 2009. Affluent and popular areas such as Newnham (which was runner-up in the Sunday Times Top 101 Places to Live) and Trumpington are finding that the strong demand conflicts with a shortage of stock.
With demand also coming from overseas (this category of buyer accounts for 22% in prime second hand market and 24% in new build market) and from families wanting to take advantage of the excellent education on offer in Cambridge, all the signs for positive growth in the foreseeable future seem to be there.