HOUSE prices in Scotland have continued to rise, according to the balance of respondents to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey.
The price balance for Scotland is the second highest in the UK after Northern Ireland, and the highest it has been for three months.
However, RICS said that while respondents remain relatively upbeat about the short-term outlook, there are signs the elections and global headwinds have been impacting on activity.
When it comes to buyer demand, a net balance of -39% of respondents in Scotland reported new buyer enquiries fell through April, which is the lowest this balance has been since July 2023. When it comes to supply, a net balance of -26% of respondents in Scotland report instructions to sell declined through April, falling further into negative territory from the -15% seen in the March survey.
Agreed sales were reported to have fallen with a net balance of -18% of surveyors in Scotland noting a decline in sales.
Looking ahead, surveyor expectations regarding house prices rose slightly. A net balance of 10% of Scottish respondents anticipate prices will rise over the next three months, up from the -10% seen in the previous survey.
On the sales front, a net balance of 5% of respondents in Scotland expect sales to rise over the next three months.
Commenting on the sales market in Scotland, Ian Morton MRICS, of Bradburne & Co in St Andrews said, “Sales are steady and above the offers over price. There is though hesitation from sellers going to the market though due to economic uncertainty.”
Marion Currie ASSOCRICS, RICS registered valuer at Galbraith in Dumfries & Galloway added, “Activity is now increasing, and where fall-throughs occur replacement buyers have come along quickly. Buyers remain cautious on purchase prices though, generally offering around valuation or only relatively small premiums over.”
Thomas Baird MRICS of Select Surveyors in Glasgow said, “The increased cost of living, fuel price rises, and interest rates are slowing down the house sales market and consequently home report instructions.”
Commenting on the UK picture, RICS head of market research & analysis, Tarrant Parsons, said, “April’s results show a housing market still in the grip of macro headwinds stemming from the Middle East conflict. Recent warnings from the Bank of England that interest rate rises may be required to tackle renewed inflation, driven by elevated oil prices and disrupted supply chains, underline the challenging environment facing buyers.
“Until there is a clearer path for inflation and borrowing costs, activity and sentiment look set to remain subdued, particularly across southern England and London where affordability pressures are most acute.”
