Peterborough is to join London Stanstead and Cambridge as part of the M11 corridor. It lies approximately ninety miles north of London.
There is to be a £1b regeneration programme throughout the town hopefully creating a further 20,000 jobs and 25,000 new homes by 2021. The main developments will be residential and the government are expected to insist at least 30% be affordable housing.
2000 houses have already been built towards the south of the town and by 2017 a further 7300 homes will be built for 18,000 people consisting of 1 and 2 bed flats and 1-5 bed houses.
Developers and planners have been warned that Peterborough is almost at saturation point with flats and that houses are popular with buyers and investors leading to some investors buying off plan.
Renting in a nice area would cost £525pcm for a 2 bed flat and £600pcm for a 2 bed house. At these prices investors are looking at 6.3% yield for a flat and 5.8% for a house.
Location is still of utmost importance and as there is a large amount of choice for tenants in Peterborough investors must make sure that rental returns over the mortgage and should look at breaking even rather than getting any profit.
A planning application for £350m is expected soon and Marks and Spencer are set to open a 14,200sq.m. department store.
Queensgate Shopping Centre is to be extended as are Peterborough Regional College and the Thomas Walker Medical Centre in Milford.
Work on a new £300m hospital, mental health unit and care centre is due to start this year.
Because of the new hospital, larger college and extra jobs more rental property will be needed so more buy to let investors will be needed to an already thriving market as in Peterborough and surrounding areas the property is much cheaper than nearby Cambridge.
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