The most notable change within the residential sector in Peterborough is the recent adoption of the district’s Local Plan, covering the period between 2016 and 2036. The plan which details the council’s vision for the city of Peterborough, sets out an ambitious target to build 19,440 homes over the next twenty years to support the district’s growing population.

Proposals to build 2,500 homes as overspill for neighbouring districts were removed from the plan, lowering the housing target from in excess of 1,200 homes a year, to 972 homes, equivalent to 1.2% additions to existing stock per year. With the lower target, the proposed scheme at Castor Hanglands nature reserve has also been removed from the plan.

The adopted housing target includes provision for a further 600 homes to house students attending the anticipated new University of Peterborough. In terms of affordable housing provision, the Cambridgeshire and Peterborough Combined Authority recently announced £6 million of grant funding for 146 new affordable homes across the district.

Although housing delivery slowed in Peterborough by 41% in 2017-18, average delivery levels are still broadly in line with housing need (942). Combined with a strong pipeline of land supply, Peterborough is projected to pass the Housing Delivery test in 2019.

In order to achieve its ambitious housing target, the council plans to deliver 59% of its housing target through a collection of existing and new urban extensions. A further 3,569 units and 945 units are planned for Hampton and Paston Reserve, both of which have been under construction for over 10 years.

The plan also sets out proposals for schemes at Great Haddon, Norwood and the East of England showground. Alongside these urban extensions, opportunity areas for regeneration have been identified at the Hampton, Orton and Werrington District Centres where over 550 units have been allocated for development.

Buoyant price growth

Against a backdrop of market uncertainty and flattening transactional activity, house prices in Peterborough are buoyant. Defying regional trends, prices rose by 5.8% in Peterborough in the year to June, compared to 1.4% for the East of England.

Underlying this price growth is the relative affordability of Peterborough compared to the wider region. Buyers in Peterborough do not face the same affordability pressures as those in neighbouring markets. The median house price to earnings ratio in Peterborough at 7.3, is significantly below both the Cambridgeshire and East of England ratios of 9.0 and 9.1 respectively. Within Peterborough itself, there remains considerable variation in the local housing market, with average prices ranging from over £400,000 on the outskirts of the city to below £200,000 in the centre of Peterborough. In the last year, market activity was concentrated towards the lower end of the market as 48% of total sales in Peterborough were below the £400,000 threshold.

In addition to the city’s robust price growth, the development land market is active, with strong rates of sale for new homes, good transport and commuting links and the district’s relative affordability, all driving demand for sites.

_{Read the articles within Spotlight: Peterborough below.}