PROPERTY firm Rettie & Co is forecasting that Scottish house prices will rise by around 1.5% this year, with overall residential property transaction activity increasing to approximately 4.3%.
Rettie is predicting continued pressure on the private rental sector (PRS), with ‘double-digit’ increases in average rents on new listings combined with a continuing fall in supply levels, subject to forthcoming government legislation.
Dr John Boyle, director of strategy and research at Rettie & Co, said, “The market continues to adjust to a new environment including higher interest rates. Demand has dropped back, but not excessively, and sales activity should recover in 2024, giving more buyers and sellers confidence to enter the market.
“As for the rental market, there is likely to be continued pressure on the private rental sector as demand has not dampened in the way it has in the sales market.
“Transactions have remained relatively robust this year, although they look like ending close to 10% down on 2022 levels. House prices have remained relatively robust in 2023, staying fairly flat across Scotland as a whole.”
