Average house prices in Peterborough have risen to £240,000 as of March 2026, marking a 5.1% increase compared to the same time last year. According to the Office for National Statistics, this growth significantly outpaces the broader trend in the East of England, where average prices remained flat at £337,000.
Semi-detached properties are driving the local market, recording a 6.1% growth rate and reaching an average price of £249,000. While Peterborough continues to see rising values, it remains notably more affordable than neighbouring areas. For comparison, the average house price in nearby Cambridge is £495,517, more than double that of Peterborough despite being only 38 miles away.
The rising cost of property is creating new challenges for those entering the market. First-time buyers in Peterborough paid an average of £211,000 in March 2026, an increase from the £201,000 recorded in March 2025. This shift means prospective homeowners must contend with the need for larger deposits and higher monthly repayments, particularly as mortgage costs remain elevated. Following a decision on 30 April 2026, the Bank of England base rate is currently held at 3.75%, while average new two-year fixed mortgage rates have risen to 5.73% from 4.83% at the start of March.
Peterborough’s performance stands out against the national landscape. Across the UK, average house prices remained stagnant at £268,000 compared to the previous year, with a monthly decline of 0.4%. The city’s sustained popularity is supported by a growing population, which increased by 17.4% between 2011 and 2021, representing the third-highest growth rate in the East of England.
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