Property investment stats for Peterlee, North East

• Rental yields are a highlight, with a market average of 7.7% and the top postcode district offering a yield of 12.9%.
• The affordability of both houses and flats, with a median sale price for a 3-bedroom house of £125,000 and a median sale price for a 2-bedroom flat of £29,950, presents accessible options for investors seeking value.
• The high proportion of families and a student population in the upper percentiles suggest ongoing demand for both family homes and rental properties.

• Capital growth has been subdued, with a 1-year growth of 1.5% and a 3-year annualised growth of -0.3%, so investors should not expect rapid appreciation.
• The area has a high unemployment rate (in the 82nd percentile), which could impact tenant stability and long-term demand.
• The proportion of degree-educated residents and professionals is low (both in the 4th percentile), which may limit future market uplift or premium tenant profiles.

Looking ahead, Peterlee’s appeal lies in its affordability and high yields, making it an attractive option for income-focused investors. The current median asking rent for a 3-bedroom house of £650 and for a 2-bedroom flat of £485 supports a positive cash flow outlook. While capital growth has only changed by 1.5% over the past year, the current supply and demand balance suggests price stability in the short term.

With a sales market that moves quickly and a rental market underpinned by families and students, Peterlee is likely to remain a steady performer for those prioritising rental income. However, significant capital appreciation seems unlikely unless underlying economic factors improve. Investors should focus on yield and liquidity, rather than hoping for rapid price rises.