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From Necklace Villages to Housing Crunch, Cambridge’s Struggle with Affordability

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Cambridge’s evolution from a tranquil market town to a thriving high-tech hub has been nothing short of extraordinary. Yet, beneath the veneer of economic success lies a pressing housing affordability crisis, rooted in decades-old planning decisions that sought to preserve the city’s heritage but inadvertently set the stage for today’s challenges.

Post-war planning

In the immediate post-war years, Cambridge’s planners adopted a conservative approach to urban growth, heavily influenced by the 1948 Holford Report. Lord Holford, a prominent urban planner, emphasised the need to protect Cambridge’s unique university-town character and its pastoral surroundings. He proposed limiting the city’s population to 100,000 (then 81,500) and encouraging growth in surrounding “necklace” villages. The establishment of a Green Belt aimed to prevent urban sprawl and preserve the city’s historic charm.

For decades, these policies achieved their primary goal: Cambridge remained a picturesque university town, largely untouched by the industrial sprawl seen in other parts of Britain. However, the emergence of the “Cambridge Phenomenon”—the explosive growth of high-tech industries since the late 1970s—brought unprecedented population and job growth, challenging the city’s ability to accommodate new residents.

The present

Today, Cambridge’s population has surged well beyond Holford’s envisioned cap, with the broader sub-region housing over 240,000 people. Jobs in the area have also skyrocketed, driven by its status as a global research and innovation hub. Yet, the rigid planning framework of the mid-20th century left the city ill-equipped to handle this growth. Housing supply has lagged behind demand, pushing property prices to unsustainable levels. Cambridge now ranks among the most expensive cities in the UK for housing, with average home prices exceeding £550,000—more than 12 times the average salary.

The scarcity of affordable housing has forced many workers to seek homes outside the city, often in the very necklace villages originally intended to absorb limited growth. These villages, and even more distant towns, have seen rapid population increases, contributing to rising commuting times and severe traffic congestion. Nearly 40,000 workers now commute daily into Cambridge, with the majority relying on private cars, further straining the region’s infrastructure and contributing to environmental challenges.

Growing inequality

The social consequences of this housing crunch are stark. Lower-income groups, including essential workers, have been displaced from the city centre, with many now reliant on social housing or living in substandard accommodations. The growing divide between affluent high-tech professionals and the rest of the population has exacerbated inequality, raising concerns about the city’s long-term social cohesion.

Proposed solutions

Efforts to address the crisis have been met with mixed reactions. Recent planning policies, such as those outlined in the Cambridgeshire and Peterborough Structure Plan, aim to increase housing density within the city and develop new communities on its periphery. However, these measures face significant challenges, including resistance from local residents, limited available land, and the enduring legacy of the Green Belt, which continues to restrict development.

Cambridge’s experience offers valuable lessons for other cities grappling with rapid growth. While preserving heritage and green spaces is vital, rigid planning constraints can inadvertently stifle a city’s ability to adapt to changing needs. As Cambridge moves forward, striking a balance between conservation and expansion will be crucial to ensuring its continued success as a vibrant, inclusive community.

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