Peterborough Rental Property Market: 5 Year Overview & 2025 Landlord Outlook

 **Peterborough Rental Property Market:

5-Year Overview & 2025 Landlord Outlook**

Over the past five years, Peterborough's private rental market has experienced a significant growth in rents. The average monthly rent has increased from £755 in 2020 to £1,055 in 2025, representing a 39% rise.

These local trends are interesting when compared with the national picture:

• UK average rent: £1,331 in 2020 → £1,803 in 2025 (35% rise)

• East of England average rent: £1,068 → £1,399 (31% rise)

Yet, as affordability tightens, some landlords who were too optimistic with their pricing have been forced to reduce their asking rents; 24% of rental listings across the UK experienced price adjustments in 2025 alone. Despite this, tenants in Peterborough are now paying substantially more than they were just five years ago.

 

---

Supply of Rental Properties in Peterborough (2020–2025)

Even though the level of rental listings coming onto the market has increased (which bucks the national trend), demand has still outstripped supply as rents have increased.

Average new rental listings per month in Peterborough:

• 2020 – 428

• 2021 – 414

• 2022 – 434

• 2023 – 442

• 2024 – 453

• 2025 – 514

---

Seasonal Trends in Supply

Rental supply tends to peak in:

• Late spring and early autumn

• October (especially strong due to the student market)

Winter months, especially December, show the lowest levels. This cyclical pattern was disrupted during the pandemic but has since resumed, albeit with generally lower volumes.

---

Supply & Demand Outlook

The current imbalance of limited supply and high demand has tightened the market.

• Nationally, rental availability remains 25% below pre-pandemic levels.

• In Peterborough, agents continue to report strong tenant demand.

• While the frenzy seen in 2022–2023 has calmed somewhat, listings still attract multiple enquiries due to the city’s relative affordability.

Low vacancy rates persist. While the supply/demand gap may be narrowing slightly, it remains significant.

Analysts estimate that 50,000 more rental homes are needed nationwide each year to restore pre-2020 availability. Until that gap closes, upward pressure on rents in cities like Peterborough is likely to continue.  While the scale of rental increases is expected to moderate compared to previous years, we are forecasting a further 3% to 4% rental growth in 2025.

 

---

Challenges and Opportunities for Peterborough Landlords

The outlook for landlords in Peterborough is a mix of pressure and potential. While rents are higher and tenant demand remains strong, landlords face rising costs, evolving regulations, and taxation changes.

---

Challenges for Peterborough Landlords

1. Regulation and Reform

• Renters’ Reform Bill proposes abolishing Section 21 ‘no fault’ evictions and introducing stronger tenant protections.

• Proposed changes to minimum EPC ratings have added pressure.

• Nearly 1 in 2 landlords in surveys express concern over costs of improving older properties.

2. Rising Finance and Maintenance Costs

• Mortgage rates have risen from 2–3% post-pandemic to 5%+ in 2024.

• The Bank of England's current base rate is 4.25%, softening the blow slightly.

• Inflation has increased repair/material costs – many landlords now spend around 20% of rental income on maintenance.

3. Taxation Pressure

• Mortgage interest relief changes and CGT rules have reduced profitability.

• Since 2017, higher-rate taxpayers pay tax before deducting mortgage interest.

• CGT reforms and Making Tax Digital bring added pressure.

• In Q1 2025, 15.6% of homes listed for sale were previously rented (up from 9.8% in 2024 – TwentyEA).

4. Tenant Expectations and Affordability

• Tenants expect better insulation, broadband, and amenities.

• Rent arrears remain a concern, especially for self-managing landlords:

  • 5–6% in arrears with self-managed properties

  • Just under 2% in arrears with managed properties

• Balancing rent increases with long-term tenant sustainability is key.

---

Opportunities for Peterborough Landlords

1. Strong Tenant Demand

• Peterborough’s affordability and good transport links make it attractive.

• Well-presented properties let quickly with minimal voids.

2. Improved Yields

• Rising rents have pushed yields to a 10-year high.

• Landlords without mortgages benefit most, but even mortgaged landlords are seeing healthy margins if rents hold.

3. Reduced Competition

• As some landlords exit the sector, others benefit from less competition.

• We are seeing portfolio expansion and a new wave of motivated landlords.

If you're a Peterborough landlord, we can consult our existing landlord database to identify:

• Portfolio purchase opportunities with tenants in situ

• Off Market investment deals — [click here to read more]

---

Conclusion

Peterborough's rental market presents both challenges and opportunities. Landlords willing to:

• Navigate regulatory changes

• Invest in quality

• Adapt to modern tenant expectations
  ...can still find lettings to be a profitable and resilient investment.

---

Need Guidance or Advice?

Whether you’re a self-managing landlord or using another agent in Peterborough:

Give us a call to discuss the best strategies to adopt in 2025.  01733 561161
Or [click here] to learn more about our Buy to Let Advisory Service

---

Over to you…
These are our thoughts. Is there anything we might have overlooked?