Cambridge vs Peterborough for Property Investment
Peterborough leads on gross yield at 5.8%, while Peterborough has the lower entry price at £255,000. Here is how the two markets compare on yield, price, deposit and tenant demand.
Cambridge vs Peterborough at a glance
| Metric | Cambridge | Peterborough |
|---|---|---|
| Average gross yield | 3.8% | 5.8% |
| Average property price | £545,000 | £255,000 |
| Implied monthly rent | £1,726 | £1,232 |
| 25% deposit | £136,250 | £63,750 |
| Stamp duty (additional property) | £42,000 | £13,000 |
| Population | 145,000 | 205,000 |
| Region | East of England | East of England |
| Investor rating | Average | Good |
Cambridge
The market skews towards period houses, detached family homes and premium new-build apartments, so entry prices sit well above the national average. Tenant demand is underpinned by a large student population, local employment in services, healthcare and logistics, supported by a population of around 145,000. On the average £545,000 purchase, a 3.8% gross yield implies roughly £1,726 per calendar month in rent — a useful sanity check when you are reviewing a listing. World-class university and tech hub with premium prices.
- Consider carefullyStandard buy-to-let
- Strong fitHMO / rent by the room
- Consider carefullyFirst-time landlord
Peterborough
Expect a spread of semi-detached family homes, period conversions and new-build apartment schemes, with terraces concentrated in the older inner areas. Tenant demand is underpinned by commuters using the town's rail and road links, local employment in services, healthcare and logistics, supported by a population of around 205,000. On the average £255,000 purchase, a 5.8% gross yield implies roughly £1,232 per calendar month in rent — a useful sanity check when you are reviewing a listing. Affordable London alternative with fast rail links.
- WorkableStandard buy-to-let
- WorkableHMO / rent by the room
- WorkableFirst-time landlord
Which is the better investment?
If monthly cash flow is your priority, Peterborough is the stronger option on paper at 5.8% gross. If you want the lower capital commitment, Peterborough needs around £63,750 as a 25% deposit. Averages only take you so far, though — run the actual listing through PropertyROI before you offer.
Analyse a Property Now