The church stands on a site between a former Anglo-Saxon palace and Northampton Castle. Two previous churches have been on the site, one built in wood, the other in stone. The present church was probably built between 1130 and 1140 by Simon de Senlis II. The west tower had fallen by 1607 and was rebuilt later in that century, moving it 12 feet (3.7 m) to the east. In the 1850s the church was restored by George Gilbert Scott. This included re-roofing the church, rebuilding the east end and lowering the floor of the nave by 1 foot (0.3 m). Scott also reconstructed the clerestory but left the Norman carvings untouched. In 1878–79 his son, John Oldrid Scott carried out a scheme of decoration using stencils on the interior of the east wall.
The church closed in 1995 and was vested in the Churches Conservation Trust in 1998. In 2002 the internal fabric of the church was being damaged by the growth of mould due to excessive condensation. It was found that this was due to the use of impervious oil-based paint. Low-level heating was installed, the mould and layers of paint were removed, and this was replaced by lime wash. Oldrid Scott's decorative scheme had been over painted. This paint was also removed, revealing the original decoration. The building is now being used as a community asset. Concerts, educational, and social events are organised in the church, and occasional services are held. An organisation known as The Friends of St Peter's was founded in 1995, which works to care for the fabric of the church, to promote research, and to encourage social use of the building.
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