Peterborough is a modern city with a growing population and an exciting future as a leading environmental and truly sustainable city.
Hailed as one of the UK’s fastest-growing cities, Peterborough has a variety of high-performing business sectors from agri-tech to engineering, environmental, digital and financial services. Meaning In essence, this means that the city can offer a wide range of excellent job opportunities, attracting a variety of potential tenants.
Average rental prices in Peterborough have increased
The average rental price in Peterborough is £724. Peterborough rental prices have increased steadily over the last 11 years. We have seen an increase of 2.27% YoY, and since 2009, the city has seen a 26% increase in rent.
The average monthly yield for a Peterborough buy-to-let property is just over 5.33%.
Tenant demand in Peterborough has grown YoY
Data from May 2020 showed that tenant demand increased by around 30% compared to the same period in 2019.
This figure should instil confidence in landlords that there is a substantial volume of would-be tenants in Peterborough ready to occupy the right property.
Peterborough is recognised as an exciting commuter town
Peterborough has been recognised as being one of the top 10 commuter towns in the UK, labelled as the best value and most exciting. The ongoing redevelopment of the station quarter will continue to make the city attractive to London commuters. Taking as little as 53 minutes to commute to London by train and enjoy direct access to several other towns, not to mention proximity to great road networks thanks to our position next to the A1M.
While Peterborough offers excellent transport links, it is also home to scenic rural areas. This element has become more appealing to renters since the outbreak of the pandemic, as city dwellers seek a living space that offers more greenery.
H2: Peterborough has a new university campus
In 2008, Anglia Ruskin University formed a partnership with Peterborough College, giving way to University Centre Peterborough.
This modern facility offers students over 25 university courses, attracting a wide variety of individuals.
Although the rise of purpose-built student accommodation has proved popular, research has shown that university locations yield around 4.4%. Student-heavy areas often see higher levels of demand for rental housing, with some willing to agree to 12-month contracts.
Further to this, each student tends to take separate tenancy agreements, resulting in consistent rental income.
Falling property prices
We expect 2021 to follow the trends we saw in 2009 – the last time we entered a recession. The Stamp Duty relief ends in March 2021 – which means we will see landlords and homeowners battle it out in some areas of the city.
A bidding war could mean that prices become inflated and it could make better financial sense to wait until the Stamp Duty holiday ends and property prices settle.
Increase in property values
Property is always going to be a lucrative investment, as long as you understand your money will not be easily accessible for some time, and the buy-to-let market in Peterborough could provide the long-term return that you hoped for.
Peterborough property values have increased by almost 200% over the last 20 years.
Of course, buying at the right price is a critical element of this investment, but so is finding the right tenants that will look after your property, ensuring its value is maintained, as well as paying the rent on time.
If you are interested in becoming a landlord in Peterborough or adding to your existing portfolio, why not contact a member of our expert team today? We have over 30 years’ experience in the Peterborough property market and working with local landlords- managing tenants on their behalf.