As we pass the halfway point of 2025, it’s clear the Peterborough housing market has settled into a more restrained rhythm than the post-pandemic boom of 2020 to mid-2022. We believe this “steady as she goes” trend will likely continue through the rest of 2025 and beyond.
As we always say in our Peterborough property market updates:
Homeownership is a medium- to long-term investment.
So let’s look at what’s happened to Peterborough house prices over that kind of timeframe.
Since summer 2005, the average Peterborough homeowner has seen their property’s value rise by 83%.
Much of this growth has been market-driven, but improvements such as renovations or extensions will also have contributed. Here’s how it breaks down by property type:
All Homes (Combined)
2005 Average: £144,796
2025 Average: £262,688
Total Profit: £117,892
Annual Gain: £5,895
Growth Rate: 4.2% per year
Apartments
2005 Average: £108,639
2025 Average: £125,264
Total Profit: £16,625
Annual Gain: £831
Growth Rate: 0.8% per year
Terraced / Town Houses
2005 Average: £116,366
2025 Average: £187,896
Total Profit: £71,530
Annual Gain: £3,577
Growth Rate: 3.1% per year
Semi-Detached Homes
2005 Average: £136,490
2025 Average: £236,799
Total Profit: £100,309
Annual Gain: £5,015
Growth Rate: 3.7% per year
Detached Homes
2005 Average: £201,958
2025 Average: £369,645
Total Profit: £167,687
Annual Gain: £8,384
Growth Rate: 4.2% per year
Inflation over the last 20 years has been approximately 77%, which impacts the real spending power of that profit.
Here’s what the real (inflation-adjusted) profits look like:
All Homes (Combined)
Real Profit: £66,530
Annual Real Profit: £3,327
Apartments
Real Profit: £9,382
Annual Real Profit: £469
Terraced / Town Houses
Real Profit: £40,367
Annual Real Profit: £2,018
Semi-Detached Homes
Real Profit: £56,608
Annual Real Profit: £2,830
Detached Homes
Real Profit: £94,631
Annual Real Profit: £4,732
Despite downturns like the 2008/09 Credit Crunch — which saw local property values fall by up to 19% — Peterborough homeowners have come out significantly ahead over the long term.
A common question we hear:
"Where is the Peterborough property market headed?"
The key factors influencing price growth will be:
Supply side: New home construction
Demand side: Employment and interest rates
Independent data suggests only 217,900 new UK households were formed last year, while at least 300,000 are needed annually to meet demand. This persistent shortfall — driven by longer life expectancy, immigration, and later cohabitation — means demand is expected to keep outpacing supply.
For Peterborough homeowners, that’s reassuring news.
Even though more landlords have exited the market in recent years — and fewer are buying — the private rented sector continues to experience net growth each year.
Many of Peterborough’s 20- and 30-somethings prefer renting. It offers flexibility, mobility, and fewer long-term commitments compared to buying.
This increasing demand means landlords are still benefiting from:
Capital appreciation
Rising rents
However, today’s buy-to-let investors must be more strategic than ever. Click here to read more about our Buy to Let Advisory service.
Until 2017, generating solid returns from buy-to-let was relatively straightforward.
Since then, new legislation and tax changes have made success more effortful.
Today, smart landlords need more than a rent collector.
They need a portfolio strategist — someone who understands:
Your short, medium, and long-term goals
How to optimise returns, yields, and capital growth
When and how to adjust your investment mix
Click here to read more about our Buy to Let Advisory service.
At City & County, we’ve evolved alongside the market and offer strategic guidance to landlords seeking clarity and direction.
Whether you're thinking of expanding your portfolio or just want to futureproof your returns, we’re here to help.
Feel free to reach out to your current agent — or speak to us directly.
Click here to read more about our Buy to Let Advisory service.
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