Peterborough Market Update – What Every Homeowner Should Know This Month!

Peterborough Property Market – May 2025 Update

Are you considering moving home in Peterborough in the next 6 to 12 months?
Perhaps you're a landlord deciding whether to expand or trim your portfolio…
Or a first-time buyer wondering if 2025 is the right year to take the leap?

Understanding whether the current property market favours buyers or sellers is key to making the right decision.

How Do We Measure the Market?

If you’ve been following our regular updates, you’ll know that one of the most reliable ways to assess market health is by comparing:

The number of properties marked “Sold STC” or “Under Offer”
vs.
The total number of properties available on the market.

This gives us a sales percentage, which acts as a barometer for market conditions.

For example:
If there are 500 homes on the market, and 200 are under offer or sold STC, that's a 40% sales rate.

Sales Percentage Guide: What Do the Numbers Mean?

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 Historical Trends in Peterborough (PE1–PE8)

• May 2018: 43%

• May 2019: 37% (Brexit uncertainty)

• May 2020: 20% (first lockdown)

• May 2021: 63% (post-pandemic rebound)

• May 2022: 64%

• May 2023: 38% (after mini-budget fallout and rising rates)

• May 2024: 37%

• May 2025: 38%

Peterborough currently sits at the upper end of a balanced market, edging toward a seller’s market.

May 2025 Sales Percentages by Postcode

As you can see, there's variation across postcodes—some areas are already behaving like seller markets.

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What Does This Mean for You?

For Peterborough Sellers:

We’re in a market where:

✅ Presentation matters
✅ Pricing needs to be spot on from day one
✅ Patience is essential

Overpricing can lead to a longer time on the market, price reductions, and reduced buyer confidence.

Good news:
The May 2025 interest rate cut (down by 0.25%) brings a boost to the market.

Why it matters:

• First-time buyers benefit from reduced monthly payments

• Home movers may use better fixed-rate deals to upsize or remortgage

• Buy-to-let investors may find yields more attractive again

• Overall buyer confidence is growing

Lenders are reacting too, with some 2-year fixed deals dipping below 3.5%, with 5-year deals not far behind.

For Peterborough Buyers:

This isn’t the mad rush of 2021 or 2022.
Now there's room to breathe… but don’t wait too long.

Tips for buyers:

• Get a mortgage agreement in principle before offering — it gives you an edge.

• Widen your search area to find value beyond the hottest streets.

• Be realistic — the best homes still attract serious attention.

Our Final Thought

With a new Government settling in, softening inflation, and lower interest rates, 2025 is shaping up to be a year of stability.

Peterborough’s property market is returning to something more balanced, sustainable, and buyer-friendly — without losing momentum for sellers who play it smart.

Have Your Say

Thinking of moving in 2025? Or just curious about the market?

We’d love to hear from you.

Whether you’re buying, selling, or just watching, drop us a line or leave a comment to join the conversation.