Peterborough House Sales Up 27.6% as Interest Rates Fall

Last week, the Bank of England's interest rate dropped to 4.5%, marking its third cut in under a year.

This decision follows a previous reduction in November 2024, with the rate remaining unchanged in December.

While most of the Bank’s policymakers supported the move to 4.5%, a minority favoured a more aggressive cut to 4.25%, highlighting the ongoing uncertainty surrounding the UK economy.

Impact on the Housing Market

The decision is widely seen as a positive step for the housing market. Lower borrowing costs could improve affordability, boosting confidence for homebuyers and those looking to remortgage.

Activity levels in the property sector have already shown improvement, with increased buyer registrations at the start of the year. However, while sentiment may improve, the immediate effect on mortgage rates is expected to be gradual as lenders respond cautiously to the new environment.

Will There Be More Interest Rate Cuts?

The trajectory of further interest rate cuts will depend on broader economic stability.

Although inflation is lower than last year, it remains a key factor influencing future monetary policy. While there is optimism that additional cuts could follow in 2025, economic volatility means nothing is guaranteed.

The latest rate cut is expected to boost confidence in the property sector.

What Does This Mean for Peterborough Homeowners & Buyers?

The UK property market was already showing signs of resilience in January, so this cut will benefit it with even more improved affordability. However, sustained growth later in the year and beyond will depend on wider economic conditions and how quickly lenders adjust mortgage rates in response.

January 2025 Property Market Stats

UK-Wide Sales Data

• The number of UK homes sold subject to contract (STC) in January 2025 was 98,978, a 17.2% increase from January 2024 (84,509 homes sold STC).
• For comparison, only 70,277 homes were sold STC in January 2023.

Regional Breakdown

• East of England: 8,733 homes sold STC in January 2024 → 11,052 in January 2025 (+26.6%).
• East Midlands: Biggest jump with a 27.5% increase.
• South East: +17.9% | South West: +16.9% | London: +18.1%.
• West Midlands: +14.5% | North East: +14.1% | North West: +13.4%.
• Yorkshire & Humber: +12.7% | Wales: +13.9% | Scotland: +5.3%.
• Northern Ireland: Only region to decline, down -3.4%.

Peterborough Property Market Overview

Homes Sold Subject to Contract (STC) in Peterborough (PE1-PE8)

• January 2023: 289 homes | Avg. agreed price: £269,903.
• January 2024: 315 homes | Avg. agreed price: £265,620.
• January 2025: 402 homes | Avg. agreed price: £294,136.

Peterborough house sales have risen 27.6% year-on-year and an impressive 39.1% compared to two years ago.

What About House Prices in 2025?

Denton House Research continues to track the £/sq.ft metric, which predicts Land Registry figures with 92% accuracy.

• January 2025 sales agreed price: £342/sq.ft.
• December 2024: £339/sq.ft | August 2024: £334/sq.ft | January 2024: £330/sq.ft.
• UK house prices have risen 3.64% in the last 12 months.

Even with increased market activity, house prices are expected to remain stable, as mortgage affordability remains a key challenge.

Considerations for Peterborough’s Property Market

For Sellers:

• The market is changing—selling now requires a strategic, adaptable approach.
• Properties take longer to sell, so pricing competitively is key.

For Buyers:

• The market offers both challenges and opportunities.
• Some properties will see strong competition, while others will offer more choice and negotiation power.

Key Strategies for Selling & Buying in Peterborough

For Sellers:

• Price competitively to attract buyers.
• Standout marketing is crucial—professional video tours, social media campaigns, and interactive property listings will help a home stand out.

For Buyers:

• Each Peterborough area has different trends—understanding local demand is key.
• If you’re looking at high-demand properties, expect competition.
• Having a mortgage pre-approval in place gives you an advantage.
• In a less competitive market, buyers can negotiate on price and extras like carpets, fixtures, and fittings.

Final Thought: The Peterborough Property Market in 2025

One key point—81% of home sellers are also buyers. If you sell for less, you should also buy for less, balancing out the impact.

As we move further into 2025, the Peterborough property market presents both opportunities and challenges. Whether you are a first-time buyer, investor, or seller, staying informed and adaptable will be crucial.

What do you think about Peterborough’s changing property market? Do you expect any major shifts or trends?

📩 We’d love to hear your insights—get in touch!