Monthly rental costs in Peterborough soar by almost £1,000 in one year - higher than rise in inflation

The cost of renting a home in Peterborough has increased by almost £1,000 in one year, according to figures from property website Zoopla.

Between January 2022 and January 2023, renters saw a 10.7% hike across the city - a £79 per month or £948 annual increase year-on-year.

The city ranked 91 out of 376 local authorities for seeing the biggest rise.

Across Great Britain, the monthly price of lettings put on the market rose by 11.1% over the same period, Zoopla’s rental index shows.

This is far higher than the 8.8% rise in the inflation measure which includes homeowners’ costs - the Consumer Prices Index including owner occupiers’ housing costs (CPIH).

Zoopla’s executive director Richard Donnell said the high prices were a result of increased demand and static supply levels.

He said: “The rental market has been running very hot over the last year. It’s a growing area of concern for renters who face a market with 33% fewer homes for rent than normal.”

He said higher prices were adding to the cost-of-living pressures on renters.

“We expect rental growth to slow over 2023 as affordability pressures bite, and the slowdown could be dramatic in some city centres. Only by boosting landlords of all shapes and sizes to increase rental supply can we improve choice and control the pace of rental inflation,” he said.

The government is set to introduce a new Renters’ Reform Bill in England, which it says will ease the squeeze on tenants, for example by giving them stronger powers to challenge rent increases.

Across a four year period, average monthly prices rose in Peterborough by an extra £140 to January 2023, compared to January 2020.

In 2020, the average yearly median rent for a property in Peterborough cost renters £688, compared to £828 in 2023.