Local renters in the region between Oxford and Cambridge could face rent hikes of more than 20% over the coming year, according to fresh research.
The surge is linked to renewed government support for the so-called Oxford-Cambridge Arc, alongside progress on the East West Rail link.
New analysis by lettings provider Zero Deposit, which looked at local property markets and historical trends tied to major infrastructure projects, suggests that households in the corridor may see rents spike well beyond current average growth rates. The research combined current 12-month rent increases in the region of 7.8% with an additional 12% uplift often tied to large-scale transport developments.
Bedford
• Rents up 9.5% year-on-year.
• Forecast 23% jump could raise monthly costs from £1,084 to approximately £1,328.
Cambridge
• City is set for two new stations, Cambridge and Cambridge South.
• Annual rent growth of 9% may climb another 22%, pushing typical monthly costs to around £2,131.
Oxford
• Currently at an average of £1,789 per month (up 8.6%).
• Could see a rise of 21% to roughly £2,173 monthly.
Central Bedfordshire
• New stations planned at Tempsford and Marston.
• Average rents at £1,160 may increase by 22% to about £1,413.
Cambourne (South Cambridgeshire)
• Current average £1,327.
• Might hit £1,607 after a 21% jump.
Zero Deposit’s researchers say this combined effect of regular rent inflation and the “infrastructure premium” is likely to accelerate lettings costs throughout the corridor. They highlight Chancellor Rachel Reeves’s recent push to revive the Oxford-Cambridge Arc, along with expanded rail links between the two historic university cities, as crucial factors.
After a period of uncertainty, the Arc’s reintroduction signals a government commitment to spurring economic development. Supporters claim new rail stations, improved connectivity, and further housing and commercial sites will galvanise growth in one of the UK’s most knowledge-intensive areas. Yet critics, including some local residents, worry that spiralling living costs could price out existing communities.
Despite these concerns, Zero Deposit sees the pattern of rent rises around major transport projects as a “clear indicator” of how the property market is likely to respond in the coming months. By tying current growth data to infrastructure-driven uplifts, the group says letting agents, landlords, and tenants alike should prepare for steeper rental costs right across the Arc region.
Outlook for residents
For those living and working in Oxford, Cambridge, or the smaller towns in between, the prospect of higher rents may add to existing pressures in a corridor already noted for its premium housing market. Tenants scrambling to find affordable homes may have to look further afield or commit to higher monthly payments.
Local authorities and policymakers are thus challenged to strike a balance between attracting inward investment and safeguarding housing affordability. While fresh rail connections and development opportunities promise to boost economic prospects, the flipside is that residents could face one of the steepest rent surges in the UK.
If the Oxford-Cambridge Arc becomes fully operational—with accelerated housing, commercial developments, and the East West Rail link delivering quicker journeys—key hotspots like Bedford, Cambourne, and Central Bedfordshire could see rent increases topping 20% in a single year. For both current tenants and would-be residents, staying informed about these potential shifts will be crucial in navigating the evolving property market across the corridor.
