HOUSE prices in Scotland have continued to ‘edge upwards’ according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey.
The research also found there has been an increase in the supply of homes coming to the market.
A net balance of 30% of surveyors in Scotland reported house prices increased over the past three months – the eighth month in a row this figure has been in positive territory. Respondents anticipate prices will continue to increase with a net balance of 14% of surveyors expecting a rise in prices over the next three months.
Supply levels were reported to have risen through July. A net balance of 19% of surveyors in Scotland reported new instructions to sell increased, up from -40% in June.
A net balance of 4% of surveyors reported new buyer enquiries rose through the month of July, up from -23% in June, and 3% in May.
Despite this, sales were reported to have fallen in July, albeit at a slower rate than seen previously. A net balance of -4% of Scottish respondents reported sales dipped, up from -16% seen in June.
In line with the increase in supply and positive demand, surveyors in Scotland are more optimistic on the sales outlook as a net balance of 23% of respondents anticipate sales will rise over the next three months.
On the lettings front, a net balance of 33% of Scottish surveyors reported demand for rental property rose, as a net balance of -20% stated that supply fell, so it is unsurprising that given the imbalance between supply and demand that a net balance of 50% of respondents anticipate rental prices will rise over the next three months.
Commenting on the sales market, Thomas Baird, MRICS of Select Surveyors in Glasgow, said, “Competitive mortgage rates between the major lenders should have a positive impact on sale figures going forward. Rental demand is still strong despite ongoing rent increases.”
Commenting on the UK picture, RICS chief economist, Simon Rubinsohn, added, “The new government’s focus on boosting housing development alongside the recent quarter point base rate cut does appear to have shifted the mood music in the sales market, with projections for both near and medium activity picking up according to the latest RICS Residential Market Survey. Inevitably, significant challenges lie ahead in delivering on the ambitions around planning reform and it is far from clear that the Bank of England will follow the August move with further easing over the coming months, but, even so, the policy mix is becoming more supportive for the sector.
“However, if there is a bit more hope regarding the sales market, the difficulties in the lettings market remain as intense as ever with little prospect of any relief in sight. Demand is continuing to run ahead of supply with many respondents to the RICS survey noting that landlords are looking to reduce holdings in the face of an increasingly hostile environment for investment in the sector.”
