NEW research has revealed that the number of homes coming onto the property market in Scotland has risen at its fastest rate since 2020.
The findings were published in the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey.
A net balance of 42% of surveyors in Scotland report that new instructions to sell rose through July – up from the 22% in June and the highest this balance has been for five years.
Demand also remained on the up during July, with a net balance of 31% of Scottish respondents reporting a rise in new buyer enquiries. However, this is down slightly from the net balance of 35% reported in June.
Sales also continued to rise, albeit at a slower rate. A net balance of 20% of surveyors in Scotland reported a rise in newly agreed sales, down from the 39% the previous month. Looking ahead, a net balance of 27% of respondents anticipate home sales to rise over the next three months.
When it comes to pricing, a net balance of 34% of surveyors in Scotland reported that prices rose over the last three months, up from 29% in the previous survey. A net balance of 22% of respondents anticipate prices will continue rising over the next three-month period.
Regarding the rental market, a net balance of 50% of respondents in Scotland expect tenant demand to rise, while a net balance of -50% expect landlord instructions to fall. In turn, rents are expected to fall flat over the next three months.
Commenting on the sales market, Thomas Baird, MRICS of Select Surveyors said, “There has been an injection of confidence into the Scottish market, with the interest rate drop beneficial, and prices remain strong. The summer slowdown always affects home report instruction levels however numbers are higher than last year.”
Discussing the rental market, Carolyn Davies, MRICS of Savills added, “Landlord rent expectations are still being matched by the undersupplied market and we are still seeing landlords leaving the rental market for a variety of reasons.”
Commenting on the UK picture, RICS chief economist, Simon Rubinsohn, said, “The somewhat flatter tone to the feedback to the July RICS Residential Survey highlights ongoing challenges facing the housing market. Although interest rates were lowered at the latest Bank of England meeting, the split vote has raised doubts about both the timing and extent of further reductions.
“Meanwhile, uncertainty about the potential contents of the chancellor’s autumn budget is also raising some concerns. Against this backdrop, respondents continue to report that the market remains particularly price sensitive at the present time.”
