House prices expected to rise in Scotland despite market starting to slow down


HOUSE prices in Scotland are expected to rise amid a fall in buyer demand, new research has revealed.

The latest RICS (Royal Institution of Chartered Surveyors) Residential Market Survey indicates that a net balance of +15% of respondents expect prices to rise over the next three months, while a net balance of +76% of respondents reported a rise in residential house prices over the past three months.

RICS added that demand can be said to be ‘slowing’, with a net balance of -16% of respondents reporting a fall in new buyer enquiries, with sales expectations for the next three months falling flat. A net balance of -10% reported a fall in new instructions to sell.

During May, it was reported that sales fell flat, which RICS explained may be due to the ‘limited’ stock available and the fall in demand. This pattern is expected to continue.

Philip Lovegrove MRICS of DHKK Limited in Edinburgh, said, “The market shows some signs of slowing. Available stock is significantly reduced from this time last year and the margin paid above market value is starting to reduce.”

Ian Morton MRICS from Bradburne and Co in St. Andrews, added, “The market has started to slow down probably due to economic uncertainty and fear of interest rises later this year. There is a hesitation from sellers coming forward as they cannot find suitable properties to buy due to lack of supply.”