A very Cambridge conundrum

COMMENT That Cambridge is a global success story is indisputable. Whether the attraction is high-tech R&D or low-tech rest and recreation along the River Cam – with a rightful reputation as one of the most beautiful cities in the country – Cambridge is a place where people are eager to live, work, put down roots and flourish. It also has a strong claim to be one of the UK’s premier residential markets, but the spectacular growth over recent decades is a double-edged sword. A housing affordability crisis means the city struggles to retain younger and less affluent workers, including key workers, who often have to live further out, putting greater stress on overworked infrastructure. The median house price is now 12.19 times the median income of those living and working in the area, compared to 4.4 in 1997. At the same time, the private rental market in the city is among the most expensive in the country, with the average rent for a one-bedroom property in the city now standing at £1,000 per month in the year to March 2022, according to data from the ONS.  So what does this look and feel like for younger people? Cambridge Ahead, a business and academic member organisation dedicated to inclusive and sustainable growth, has been working closely with its Young Advisory Committee to find out. Different challenges  A group of under-35-year-olds has undertaken research with Savills to bring to life the preferences and the challenges which face different cohorts through developing four “tribes”. These represent skilled graduates moving to the city for their first job (worker bees), essential workers who keep the city running (Cambridge cogs), people who have grown up here and want to remain in the place they call home (limbo landers) and those looking to get a foot on the housing ladder for the first time but choose to settle in outlying towns and villages because they cannot afford to live in the city centre (space cadets). For each tribe, our analysis of Experian Mosaic data provides an estimate of the number of households in each group and where in the city’s travel-to-work area they predominantly live. Overall, the work shows that younger households are only able to access a very small proportion of the homes on sale in the city and average rents easily exceed a third of median average salaries. This causes many younger households to live in shared housing in cheaper parts of the city or in nearby towns. Importantly, this research looks at the preferences of groups of younger people, and the trade-offs they are prepared to make depending on their circumstances. Whether they prioritise for example, personal space, social interaction, proximity to work, access to frequent public transport, or many other conditions. Understanding these dynamics is crucial in finding viable and realistic options to better meet the housing needs of younger people in a highly pressurised housing market. Finding the right balance  The ongoing success of Cambridge relies on the ability to attract and retain young people. Failure to do this will have a profound long-term impact on business growth and public service delivery. The hope is that this research will stimulate a discussion with and between those who set housing policy and those who bring forward major developments in our city region.  There are a number of new neighbourhoods under construction or planned across the city and the potential to create connected, green communities is now an important priority for Cambridge. There is an exciting opportunity for developers, planners and local authorities to work in partnership to establish an innovative and fresh approach to deliver a variety of new housing products and tenures that aren’t currently available but which would better suit the needs of the younger population. Balancing the needs of different types of households in terms of both price point and tenure, along with delivering homes that allow for sustainable lifestyles, is a conundrum and a priority. Abigail Jones is a director in the development team at Savills in Cambridge