House prices across England and Wales continue to rise, with an annual growth rate of 1.9%—still trailing behind inflation. However, market activity in the East of England provides a closer look at what’s happening in this region.

According to a report from Home.co.uk, rental prices in London have dropped sharply, with areas like the City of London and Hackney experiencing the largest declines. In contrast, regions such as the East Midlands and Yorkshire have seen double-digit rent increases.

Locally, the rental market has remained more balanced, supported by strong demand for homes in areas offering good transport links and quality of life.

Despite some challenges, the property market continues to show resilience. Turnover remains high, and the average time it takes to sell a home is notably faster than pre-pandemic levels.

Nationwide, the number of unsold properties has dropped in recent months, though it remains the highest for January since 2015. Meanwhile, new property listings are up by 8% compared to December 2023, suggesting increased seller activity that could influence regional markets.

While the North East leads the way in property price growth at 5.1%, and Yorkshire follows at 4.6%, the East of England has seen more modest growth of just 0.4% over the past year. Even so, demand for homes in the area remains steady, particularly in sought-after locations with easy access to London.

The report points to a potential Bank of England rate cut in February, which could provide a short-term boost to buyer confidence. For now, the overall health of the property market remains positive, with transaction volumes exceeding pre-pandemic averages.

However, challenges like borrowing costs, stamp duty, and affordability constraints are expected to moderate price growth. Buyers and sellers alike will need to navigate these factors carefully in the months ahead.

Source: Property 118 edited by Perry Brown for readability.