v

M A R K E T I N S I G H T R E P O R T

P E T E R B O R O U G H

P E T E R B O R O U G H I N S I G H T R E P O R T

A R R I V A L

P E T E R B O R O U G H I S A C A T H E D R A L C I T Y W I T H A R I C H H I S T O R Y

O N T H E B E A U T I F U L R I V E R N E N E I N C A M B R I D G E S H I R E .

T H E C I T Y A N D I T S S U R R O U N D I N G S , I N T H E H E A R T O F R U R A L

E A S T E N G L A N D , H A V E A W E A L T H O F H I S T O R I C P A R K S ,

G A R D E N S , P R O T E C T E D B U I L D I N G S A N D C O N S E R V A T I O N A R E A S .

Peterborough’s history dates back to the Bronze Age, and the earliest signs of human settlement can

still be seen at the Flag Fen archaeological site to the east of the city centre, later the site of a Roman

settlement. During the Anglo-Saxon period, the monastery Medeshamstede was formed, which later

became Peterborough Cathedral – a magnificent building that took more than 120 years to complete.

Now, Peterborough is a modern cosmopolitan city, with a wide variety of restaurants and shops.

The city has about 200,000 inhabitants and the local authority has the fastest growing population

in the East of England.

A M O D E R N , G R O W I N G C I T Y Peterborough is a historic city with a very bright future. It is the fastest

growing local authority in the East of England, according to official

figures. In excess of 7,500 people migrated there in 2016, of which

more than 40% were between the ages of 20 and 34. The city’s

population is forecast to grow by 23% to more than 240,000 by 2036.

Peterborough’s modernisation began in the 1960s when it was

designated as a New Town during the rebuilding of post-war Britain.

The plan to rehouse London’s overspill population sparked

a development boom that shaped the city as it is today.

Now Peterborough is an important stop on the East Coast Railway

Line connecting London and Edinburgh. It is within easy reach of York,

Cambridge and Birmingham. Four major airports – London Stansted,

London Luton, East Midlands and Birmingham International are all less

than 90 minutes’ drive away.

Peterborough is primed to benefit from the UK government’s plan

to create an ‘Eastern Powerhouse’ by devolving power to the region.

In March 2017 the Cambridgeshire and Peterborough Combined

Authority was formed and became one of the first areas in the UK

outside London to elect a mayor. As part of a devolution deal with the

Government, the combined authority will receive £770 million of new

funding for local infrastructure and housing.

In November 2017, as part of a Government bid to nurture

innovative industries in the region, the Chancellor of the Exchequer,

Philip Hammond, revealed plans for a ‘growth corridor’ akin to

California’s Silicon Valley including Cambridge, Milton Keynes

and Oxford. The Government has asked the Cambridgeshire and

Peterborough Combined Authority to develop an ambitious Local

Industrial Strategy to support the area’s world-class science and

innovation businesses. Ministers are working on a series of sector

deals with the life sciences, construction and artificial intelligence

sectors to support their growth in the corridor.

P E T E R B O R O U G H I N S I G H T R E P O R T

N E I G H B O U R H O O D V I B R A N T

R E S I D E N T S I N P E T E R B O R O U G H C A N E N J O Y A M I X O F A C T I V I T I E S F R O M E X P L O R I N G

H E R I T A G E A T T R A C T I O N S , V I S I T I N G E L E G A N T N E I G H B O U R H O O D R E S T A U R A N T S T O

C O U N T R Y S I D E W A L K S T H R O U G H N A T U R E R E S E R V E S A N D B E A U T I F U L V I L L A G E S . T H E R E

A R E 2 9 C O N S E R V A T I O N A R E A S I N T H E V I C I N I T Y A N D M O R E T H A N 1 , 0 0 0 L I S T E D

B U I L D I N G S . T H E C I T Y I T S E L F H A S S E V E N H I S T O R I C P A R K S A N D G A R D E N S .

Perhaps the city’s most beautiful green space

is Central Park, a quintessentially English

park with a sunken garden, play areas,

tennis courts, a croquet lawn and the popular

Buttercross Tea Rooms. For a more rustic

experience, the Ferry Meadows Country Park

is an unspoilt expanse of meadows, lakes

and woodland less than three miles from

Peterborough’s city centre.

Closer to home, the city’s star attraction

is Peterborough Cathedral, one of the finest

Norman cathedrals in England. Founded as a

monastic community in 654 AD, it became one

of the most significant medieval abbeys in the

country, and is the burial location of two queens.

Alongside its wealth of historic attractions,

Peterborough has an abundance of retail,

cultural and culinary attractions. The

Queensgate Shopping Centre has more than

90 shops and a plethora of restaurants and

cafés. The Key Theatre shows a mixture of

‘home grown’ productions, national touring

shows, local community productions and a

full programme of one-off concerts. Foodies

can choose from fine dining to gastro pubs,

but for a special experience, can try one of the

floating restaurants by the River Nene.

P E T E R B O R O U G H I N S I G H T R E P O R TP E T E R B O R O U G H I N S I G H T R E P O R T

C O N N E C T I V I T Y

Peterborough is very well connected, linked by the East Coast Main

Line Railway to both London and Edinburgh. The fast intercity trains

take just 50 minutes to reach the centre of London.

The city’s exceptional connectivity, its location less than an hour’s

drive to Cambridge University, and proximity to a raft of headquarter

locations for some of the world’s leading science and innovation

companies, has made Peterborough and the surrounding area

a key strategic location in the UK government’s economic strategy.

K E Y L O C A T I O N S

Peterborough

London

Cambridge

Birmingham

Oxford

Stevenage

P E T E R B O R O U G H I N S I G H T R E P O R TP E T E R B O R O U G H I N S I G H T R E P O R T

A I R P O R T C O N N E C T I O N S

6. Stansted Airport

7. Luton Airport

8. East Midlands Airport

9. Birmingham Airport

10. Heathrow Airport

11. Gatwick Airport

E D U C A T I O N

1. Cambridge University

2. Oxford University

3. Oundle School

4. Oakham School

5. Uppingham Independent School

Bristol

1hr 45mins

Birmingham 1hr 25mins

Bath

1hr 30mins

Peterborough

50mins

Cambridge

50mins

London

R E S E A R C H

There remains a price differential when comparing Peterborough

with neighbouring locations and popular commuter towns a similar

journey time from the capital (Fig 2). The average price of a home

in Cambridge and Oxford, for example, is more than double that

of Peterborough.

H O U S E P R I C E S O U T P E R F O R M I N GHouse prices in Peterborough have outperformed London and the

UK recently, climbing 24 percent during the past three years (Fig 1).

H O U S I N G S U P P L YPeterborough needs 942 additional homes

a year, every year until 2026, if it is to meet its

housing need, a figure only met in two of the

past seven years.

N E W H O U S I N G D E L I V E R Y

8,478 N E W H O M E S

N E E D E D B Y 2 0 2 6

A V E R A G E S A L E S P R I C E A C H I E V E D

P E T E R B O R O U G H I N S I G H T R E P O R T

90

110

230

220

190

170

140

Jan Mar May NovSepJul Jan Mar May NovSepJul Jan Mar May SepJul

Source: Land Registry

Source: Land Registry

Source: DCLG

Fig 1

Fig 2

Fig 3

Outer LondonLondon

UKPeterborough

2015 2016 2017

1,600

1,400

600

1,200

400

1,000

200

800

0

2010-11 2011-12P 2012-13P 2013-14P 2014-15P 2015-16P 2016-17P

Net Additional Dwellings

conservation areas historic parks and gardens Peterborough’s population is forecast to grow by 23% to 240,830 by 2036

29 7 23%

FLATTERRACEDSEMI-DETACHEDDETACHED

12%34%30%24%

P R O P E R T Y T Y P E

PRE 19001900-19391945-19721973-19992000-PRESENT

8%12%22%42%16%

P R O P E R T Y A G E

P E T E R B O R O U G H I N S I G H T R E P O R T

Source: Experian

Owner Occupied

Council / Housing Association

Privately Rented

G R O W I N G R E N T A L M A R K E TPeterborough has a growing rental market. The number of rental agreements signed during the year through October 2017 has climbed 34%

compared with the same period in 2015 (Fig 4). Average rents for a two bedroom apartment stand at £675 a month (Fig 5).

M I X O F H O U S I N G T E N U R E

A V E R A G E A N N U A L G R O S S M I G R A T I O N F L O W S 2 0 1 6 - 2 0 4 1

Source: GLA, 2016-based central projections – population in thousand

listed buildings

1,000+

East of England

London South East

107

41 3476 31

183112302

18771220

104

Res

t of

UK

and

ove

rsea

s Rest of U

K and

overseas

R I S I N G N U M B E R

O F R E N T A L A G R E E M E N T S

R I S I N G A V E R A G E R E N T S

200 £680

£600

£640

£560

£540

£700

£620

£660

£580

150

100

50

0

Source: Rightmove Source: Rightmove Fig 4 Fig 5

All Properties All Properties2 Bed Flats 2 Bed Flats

Year to Oct 2015

Year to Oct 2015

Year to Oct 2016

Year to Oct 2016

Year to Oct 2017

Year to Oct 2017

FIGURE 4 :: Index rebased 100=2015 FIGURE 5 :: Average median rents per calendar month

The City of Peterborough has the fastest growing population of any local authority in the

East of England. The surrounding area is set to see a notable influx of people from London,

according to data from the Greater London Authority. Some 76,000 people will migrate from

the capital to the East of England by 2041, almost double the number migrating the other way.

A little over half of Peterborough’s

housing is owner occupied.

A quarter is privately rented.

C O N T A C T For more information or to speak to

someone in our team, please contact us:

K N I G H T F R A N K M A L A Y S I A :

I N T E R N A T I O N A L R E S I D E N T I A L

Dominic Heaton-Watson

REN 12272

International Project Marketing

+6010 4389 169

dominic.hw@knightfrank.com

R E S E A R C H :Patrick Gower

Associate

+44 20 3640 7015

patrick.gower@knightfrank.com

v

K N I G H T F R A N K . C O . U K