SURVEYORS in Scotland have reported house prices rose through the first quarter of 2025.
The findings are revealed in the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey, showing a ‘more resilient’ upward trend than all other UK regions aside from Northern Ireland.
The results show a net balance of 34% of respondents in Scotland report house prices increased through Q1, 2025. While this is down from 45% seen in the February report, it is significantly more than the UK average of +2%.
However, economic concerns could be starting to weigh on sentiment in Scotland, as is the case in other regions of the UK. A net balance of -9% of surveyors noted a fall in new buyer enquiries through March, falling from the 14% seen in the survey previous.
When it comes to house sales, a net balance of 4% of surveyors in Scotland report sales rose through March, down from +22% in the last survey. Surveyors are also slightly less optimistic than they were with a net balance of 20% anticipating sales will increase over the next three months compared to +28% in last month’s report.
It is a similar situation with price expectations. Whilst these remain positive, the balance of Scottish surveyors expecting prices to rise over the next three months has moved to +6% compared to +15% last month.
In the rental market, a net balance of -25% of surveyors noted a fall in tenant demand in Scotland, whilst landlord instructions were reported to have fallen flat. Despite this, a net balance of 25% of surveyors expect rents to increase through Q2.
Commenting on the sales market, Thomas Baird MRICS of Select Surveyors in Glasgow said, “There is a clamour for properties at sub £50k sale price due to increase second home tax. But it is slower at higher end of market due to interest rate levels.”
Discussing the rental market, Carolyn Davies MRICS of Savills in Dumfries added, “There is continued demand for suitable accommodation, and a lot of private lettings taking place directly between landlords and tenants, with property not coming to the market place.”
Commenting on the UK picture, RICS chief economist Simon Rubinsohn said, “The expiry of the stamp duty break was always going to lead to a pause in activity in the sales market. However, the latest results, and indeed the anecdotal remarks from respondents to the survey, suggest that the shift in sentiment has been aggravated by the slew of negative macro news flow over the past few weeks.
“Looking forward, the impact on the market will in no small part depend on how the economy is affected by the emerging trade war and the response of the Bank of England to the shifting environment. For now, it is noteworthy that the longer-term RICS expectations metrics are still relatively resilient, but they have the potential to be blown off course if the tariff headwinds intensify.”
