Is Peterborough London's Most Undervalued Commuter City?

The latest Centre for Cities data show that Peterborough’s population grew by 14.2% between 2014 and 2024, more than twice the national rate, taking the city’s population to more than 223,000.

Employment grew even faster, increasing by 23.9% over the same period, the third-highest rate among the UK’s largest cities. Peterborough also ranked 13th for businesses per 10,000 residents and 14th for its private-sector-to-publicly-funded employment ratio.

The city has a diverse employment base spanning logistics, engineering, manufacturing, environmental services, financial services, healthcare, retail and public administration.

Peterborough’s Economic Growth Strategy reports that the number of businesses operating in the city increased by approximately 50% between 2010 and 2023. That was close to twice the growth rate across the East of England and substantially ahead of the national average.

There are still areas where Peterborough needs to improve, particularly skills levels and household earnings. The city’s next phase of economic development is therefore focused on attracting more highly skilled, higher-value and better-paid employment. For investors, this represents both a current economic constraint and a potential source of further growth as the city’s employment profile develops.

Work has commenced on the £65 million Station Quarter programme, marking a significant step in Peterborough’s city-centre regeneration. The scheme includes new eastern and western station entrances, improved public spaces, additional parking and a safer, more direct connection between the railway station and the city centre.

The City Link phase is expected to be completed in spring or summer 2027, with the wider Station Quarter programme scheduled for completion by the end of 2028.

Peterborough City Council has identified more than 30 development sites across the Station Quarter, Riverside, Embankment and the wider city regeneration programme. This creates a broader pipeline of housing, employment, commercial and infrastructure investment, reducing reliance on any single regeneration project.

Growth is also extending beyond the city centre. The Great Haddon programme is expected to deliver approximately 5,350 homes, 9,000 jobs, four schools, and three shopping centres, demonstrating that Peterborough’s expansion is supported by both job creation and social infrastructure.

For property investors, the significance lies not simply in the scale of planned investment, but in the fact that major schemes are now moving from strategy into delivery.

Peterborough occupies a strategically important position on the East Coast Main Line and the A1. LNER operates direct services to London King’s Cross in approximately 50 minutes, while direct rail connections also extend to Cambridge, Leeds, York, Newcastle and Edinburgh.

Peterborough should not be viewed solely as a London commuter location. Its own expanding employment base creates substantial local housing demand. Fast access to the capital broadens that demand further by appealing to hybrid workers, relocating households and businesses seeking greater affordability without sacrificing connectivity.

Few UK regional cities combine this level of national transport access with an average property price below £240,000.

Savills forecasts cumulative house-price growth of 19.3% across the East of England between 2026 and 2030.                                             

That expansion is being reinforced by major infrastructure investment, extensive regeneration, rising rents and direct rail services to London King’s Cross in approximately 50 minutes. Average property values also remain substantially below the East of England average, preserving accessibility for tenants and owner-occupiers while providing headroom for further growth.

Population expansion, employment creation, connectivity, investment and affordability provide the foundations of Peterborough’s long-term property case. The Savills regional forecast reinforces an outlook already supported by the city’s underlying fundamentals.

SmartLandlord has agreed exclusive off-market terms on two separate freehold mini-blocks. Each block comprises three self-contained apartments arranged across three floors and is held under its own single freehold.

For investors seeking the diversification and operational efficiency of a larger rental asset without requiring institutional-scale capital, a freehold mini-block can provide an attractive middle ground. Multiple tenancies create several income streams within one asset, while full freehold ownership gives the investor greater control over the building, common structure and longer-term asset strategy.

Why landlords like freehold mini-blocks

Peterborough combines many of the fundamentals SmartLandlord looks for when identifying emerging investment locations. These include high population and employment growth, rising rental demand, comparatively accessible property values, excellent national connectivity, and significant regeneration already entering delivery.

What makes the city particularly interesting is the relationship between growth and value. Peterborough has expanded faster than many UK cities, yet average property prices remain substantially below the East of England average. This creates an attractive entry point into a market where the underlying economic and demographic fundamentals are already established.

The investment case for Peterborough does not depend on a single regeneration project or on a future house-price forecast. It is supported by employment growth, population expansion, rental performance, infrastructure investment and relative affordability. Together, these fundamentals provide a strong foundation for rental income and long-term capital growth.

Office for National Statistics Peterborough house prices and private rents
Centre for Cities Peterborough 2026 city factsheet
Peterborough City Council Peterborough population and employment growth
Peterborough City Council Peterborough Economic Growth Strategy
Peterborough City Council Peterborough regeneration programmes
Peterborough City Council Peterborough Station Quarter
Peterborough City Council Great Haddon growth and infrastructure
LNER Peterborough to London King’s Cross
Savills Mainstream residential forecasts 2026 to 2030