The number of properties coming onto the market for sale in Scotland increased at its strongest rate in three-and-a-half years in March, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey.
New buyer enquiries and newly agreed sales were also reported to have risen, while expectations for both prices and sales increased in both the short and the long-term.
A net balance of 29% of Scottish respondents to the survey noted that instructions to sell increased – the fourth consecutive month of increase. A net balance of 11% of surveyors in Scotland noted an increase in new buyer enquiries in March, compared to 20% and 27% in February and January respectively.
In terms of sales, a net balance of 14% of surveyors in Scotland reported a rise through the month of March, compared to a fall in February.
Regarding the three-month and 12-month outlooks, a net balance of 17% of Scottish respondents anticipate sales will rise over the next quarter, and a net balance of 37% expect sales will rise over the next year.
On pricing, a net balance of 21% of surveyors said prices rose over the first quarter of 2024. This is higher than the UK average in which the net balance is reported to be -4%. Looking at pricing over the next quarter, a net balance of 20% anticipates a rise, which is the second highest pricing expectation balance after Northern Ireland. A net balance of 54% of Scottish respondents expects prices to be higher in a year’s time.
The ‘imbalance’ between demand and supply in the Scottish lettings market continues, with a net balance of 33% of surveyors noting a rise in tenant demand, and -17% of surveyors reporting a fall in supply. Subsequently, it is unsurprising a net balance of 50% of surveyors anticipate rental prices to increase over the next three months.
Commenting on the sales market, Charlie Barrett, MRICS of DM Hall Chartered Surveyors in Edinburgh, said, “The market conditions appear relatively steady, a busy start to the year has levelled out. A busy period is anticipated as we approach the spring and summer.”
Alan Kennedy of Shepherd Chartered Surveyors in Fraserburgh added, “The property market in this locality has been fairly active during March with reasonably priced properties selling quickly in most sectors.”
Discussing the rental market, Ian Morton, MRICS of Bradburne & Co in St Andrews commented, “The demand for rental properties continues to outstrip supply and rents continue to rise. Government restrictions have eased slightly leading to rent increase notices being served on existing tenancies.”
Commenting on the UK picture, Tarrant Parsons, senior economist, RICS, said, “Demand continues to recover gradually across the UK housing market, with new buyer enquiries rising for a third month in succession according to the latest survey feedback. With the inflation backdrop turning a little less difficult of late, this has led to expectations that the Bank of England will be able to start lowering interest rates later in the year. This should continue to support the market to a certain degree going forward.
“In keeping with this, near-term sales expectations point to an improving outlook, albeit the scope for an acceleration in activity will still be relatively limited given mortgage rates are set to remain much higher than in 2020/21.”
