It looks like the recent house price slump is well and truly over. In May, Zoopla announced a 4 per cent annual rise in the number of sales agreed in London. The Royal Institute of Chartered Surveyors (RICS) has also reported a rise in new home buyer enquiries in June, which could push up property prices in London.
If UK prices are going up year-on-year, why did the number of property sales tumble in the spring, and what’s behind the latest figures? Our estate agents in Ilford have joined forces with our Newbury Park estate agents to come up with the answers. Read on to discover what happened and find out what lies ahead for East London’s busy housing market.
Why did prices fall?
The housing market slumped across the country when sales were affected by a change in Stamp Duty (SDLT). This made property less affordable for home buyers in the UK.
The reason for the Stamp Duty hike dates back to 2022, when Liz Truss’s government announced a permanent reduction in SDLT rates. The move to cut this unpopular tax was part of a package of controversial economic measures that caused financial markets to crash. In order to calm market volatility, the permanent Stamp Duty cut was changed to a temporary ‘holiday’, which ended on 31st March 2025.
As that date approached, home buyers naturally raced to meet the deadline. This caused a minor boom in property sales in late 2024 and early 2025. Inevitably this was followed by a slump, as the new Stamp Duty rates took effect.
Are there any other factors affecting house prices?
When compared to last year, London and the south east saw some of the biggest increases in homes listed for sale. This has had a knock-on effect on house prices, as buyers now have more properties to choose from. Sellers are therefore being advised to set a competitive price to attract a buyer.
Some East London boroughs, however, are experiencing something of a boom and attracting the attention of investors. In the year to April 2025 Waltham Forest enjoyed an 8.6 per cent rise in property values. Redbridge prices went up by 7.9 per cent and Havering saw values increase by 7.7 per cent.
What’s happening with mortgages?
New regulatory guidance has encouraged mortgage lenders to be more flexible about the grounds for mortgage affordability. Major high street lender Halifax says it has already helped 3,000 more buyers, including 1,000 first time buyers, as a result of this change. This new flexibility could have a sizeable impact on the property market, going forward.
Mortgages are also getting cheaper as lenders begin to price in the next mortgage rate reduction, expected in August. The website Moneyfacts reports that the average two-year fixed mortgage deal is currently 5.05 per cent, having fallen by 0.43 per cent since January. The average five-year fixed mortgage now stands at 5.03 (which represents a 0.22 per cent drop since January).
Recently Andrew Bailey, the governor of the Bank of England, caused excitement by hinting that he might abandon his “cautious” approach to dropping interest rates. That means rates could fall faster than anyone has expected this year.
What are the prospects for the East London property market?
The summer is traditionally a quiet time for property sales. However, wages continue to rise – helping with affordability – and buyers now have more confidence to plan ahead thanks to lower interest rates. Consequently, we are likely to see house prices increase this autumn.
East London is an attractive destination for home buyers and investors. The property available here matches current buyer demand for larger home spaces with outdoor areas and access to open green spaces. The ability to commute quickly and easily is also key for home movers and renters who work in central London: currently the commute from Ilford to central London can take as little as 18 minutes.
What are the rules and licensing charges for each east London borough?
The summer is traditionally a quiet time for property sales. However, wages continue to rise – helping with affordability – and buyers now have more confidence to plan ahead thanks to lower interest rates. Consequently, we are likely to see house prices increase this autumn.
East London is an attractive destination for home buyers and investors. The property available here matches current buyer demand for larger home spaces with outdoor areas and access to open green spaces. The ability to commute quickly and easily is also key for home movers and renters who work in central London: currently the commute from Ilford to central London can take as little as 18 minutes.
Where can I get good local guidance?
Whether you are buying a property or selling your home, it’s important to get expert local advice. As estate agents with over 30 years’ experience of East London sales and lettings, we would be delighted to help. Further interest cuts, expected in the late summer and autumn, could make mortgages cheaper and encourage more buyers to enter the market. As the summer holidays draw to a close, we anticipate that market activity will pick up sharply.
If you want to be ahead of the crowd when that time comes, why not register with us? Our friendly sales team will be happy to talk through your moving plans. Contact us today.
Get in touch via 020 3972 7341 or email info@oaklandestates.co.uk. to share your plans with us.
Meanwhile, if you’d like to find your dream home or properties to rent in Ilford, wanstead, Newbury Park, Barkingside and surrounding areas, check the links below
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