Peterborough Homeowners Pocket £5,895 a Year in Profit Since 2005

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.

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Peterborough Property Prices: 2005–2025

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:

Average Growth 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

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Factoring in Inflation

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:

Real (Inflation-Adjusted) Profits

• 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.

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What’s Next for Peterborough Property Prices?

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.

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What About Peterborough Landlords?

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.

Why?

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.

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Strategic Lettings: The New Buy-to-Let Landscape

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.

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Need Help? We’re Here.

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.