Peterborough is a Top Destination for Property Investment

CAMBRIDGE, U.K. - Jan. 20, 2016 - PRLog -- Peterborough is currently being transformed thanks to a £1 billion regeneration program that is now underway. Key developments such as Gateway Peterborough and Fletton Quays will bring new housing, leisure facilities and employment opportunities to the city.

Peterborough’s regeneration will include an improved rail link to London, bringing the journey time down to 39 minutes, by 2019. As the cost of living in London becomes increasingly unrealistic and transport links along the East Cost mainline improve, more people will look to live further away for cheaper housing and a better standard of living.

Peterborough is the UKs second fastest growing city just behind Milton Keynes. Peterborough City Council estimates between now and 2031 the population will increase 21.7%. The population increase is due to a mixture of a high birth rate and migration. Peterborough’s regeneration is likely to attract more people as the city’s image improves and people relocate for employment opportunities.

For property investors, Peterborough is a winning destination because it combines reasonable house prices with high demand for rental property. The average house price in Peterborough currently stands at 167,000, which is 42% less than the national average house price £288,000.

Buying investment property now means that investors will benefit from realistic property prices and healthy rental yields but they may also benefit in the long term from capital appreciation. According to the latest report from RICS, house prices in the East of England are predicted to rise 8% in 2016; faster than any other UK region.

A current concern of investors is the 3% stamp duty surcharge which will come into affect this April. Considering the average priced property in Peterborough is £167,000, the new stamp duty will add an extra £5,000 to the upfront capital used to invest. This will have an impact on investors’ initial cash flow and could deter people from investing in more expensive properties.

Local property specialists, Belvoir don’t think investors should be out off by the new stamp duty:

“On a property worth £160,000, the extra stamp duty would reduce the gross yield from 5.7% to 5.5% so the overall impact of this change is low.” Said Luke Clarke, Buy to Let advisor at Belvoir Peterborough. “Investors should also consider the bigger picture; demand for rental property is only going to grow and property prices should continue to rise.”

With exciting regeneration bringing new opportunities and a growing population, there’s no doubt Peterborough is a city to watch in the future. Belvoir Peterborough is hosting an Investment Seminar on 27^th January which will explore the development of the city in depth. For more information visit http://www.belvoir.co.uk/peterborough-property-workshops-p6738