So far as rental demand in the future is concerned, it is virtually certain that demand is likely to increase even further due to the following factors:
The existing student population is forecast to increase by over 5000 in the next 3 years. A rise in post-graduate numbers, alongside a huge expansion of buildings and student intake at the Cambridge Regional College will ensure continued growth.
Cambridgeshire is seeing the largest population growth in the UK (bar Milton Keynes). The Department of Environment forecast the increase in number of households to be 34.2% between 1992 and 2011, as against 8.2% for London, 9.8% for Surrey.
East Anglia has the lowest unemployment rate (3.2%) of all the UK regions, and attracts a highly skilled workforce;
Stansted, London's new third airport, is set to grow substantially over the next few years with passenger increases and developing infrastructure;
Tourism in Cambridge continues to flourish. Sir Hugh Casson recently described it as the most beautiful university city in the world.
Science based industries continue to grow as a result of inward investment and government support. The Cambridge Research Park at Landbeach, Granta Park at Abington, as well as the Brabraham Institute and Hinxton centre for genome research all reflect the growing international importance of Cambridge as an economic centre.
Residential property in this area has seen outstanding capital appreciation. The factors outlined above should ensure that this continues, and that demand for housing will continue to keep rental values increasing.