People renting one-bedroom homes in Peterborough, Cambridgeshire, saw rents rise by 5.2% in the 12 months to December 2025. According to the Office for National Statistics (ONS), the average monthly rent for one-bedroom properties was £680 in December 2025, while the overall average private rent in Peterborough was £972. The increase is being driven by a shortage of available homes and high demand from students and commuters, making it harder for residents to balance their monthly budgets.
The rise in rent for smaller flats outpaced broader growth across the city (one-bed rents rose 5.2% compared with around a 4.5% increase for private rents overall). Local experts and analysts say the price hike is pushing many one-bedroom properties toward a cost of around £1,000 per month, a financial hurdle for many local workers. That translates to an additional annual housing cost of roughly £500–£600 for many renters, according to local analysis.
Competition for these properties has intensified because of demand from students at ARU Peterborough and people commuting to London for work. At the same time, industry data for Q1 2025 indicate that 15.6% of properties newly instructed for sale were previously rented homes, reducing the available private rental stock and worsening shortages.
To address these issues, Peterborough City Council’s Housing Strategy 2024–2029 sets out plans to increase the supply of affordable homes through 2029. The council also operates a Selective Licensing scheme (introduced on 11 March 2024 and running to 10 March 2029) to improve standards in the private rented sector; some observers argue the costs associated with licensing can be passed on by landlords and contribute to higher rents for tenants.
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