Estate agency Hurford Salvi Carr has published its sales and lettings predictions for 2015.
The property company, which has an office in Branch Road, Limehouse, predicts strong demand for rentals in the City and Docklands this year, due to strong employment prospects in both areas.
It expects a two-tier sales market will emerge, with properties up to £1million continuing to attract buyers - helped by the new Stamp Duty rules.
Sales of properties over £1million are expected to be slow in the first half of the year as uncertainty grows in the build up to May's general election and the potential introduction of mansion tax.
A spokesman said: "We expect prospective buyers to become increasingly frustrated by lack of opportunity as prices stubbornly hold firm until confidence returns to the market following the general election.
"After the general election, provided there is a clear winner and a new government is formed, the market will quickly regain confidence and we expect a feel-good honeymoon period.
"We expect buyers to return with renewed confidence in the second half of 2015."
The agency believes the rental market will remain stable, with little change from 2014.
The spokesman said: "A combination of growth in the number of prospective tenants and properties made available for rent will keep rents in check for 2015.
"This will especially be the case as development completions due this year will continue to feed stock to the market.
"However, a robust rental market in the first half of 2015 may lead to increases in some locations of up to 5% through the busier summer months when demand is at its strongest.
"We expect strong demand from the UK buy-to-let investors in 2015 as lower Stamp Duty and a strong rental market attracts investment funds."
The general election is also expected to be closely watched by landlords, as the Labour Party has announced plans to reform the private rental sector, with proposals to include three-year tenancies that would limit the amount rents could increase each year.
Go to hurford-salvi-carr.co.uk for more information.