NEW research has revealed house prices in Scotland have continued rising, albeit at a more modest rate than seen previously.
The findings are contained in the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey.
A net balance of 12% of surveyors in Scotland report house prices rose over the past three months, falling from the 37% seen in the survey previous. This is the lowest this balance has been since February 2024.
However, Scotland did see the third highest balance across all UK regions after Northern Ireland and the north west. It was also substantially higher than the UK average.
When it comes to buyer demand, a net balance of -17% of respondents in Scotland reported new buyer enquiries fell through May, which is up from the -38% seen in the April survey, and better than most other UK regions.
As far as supply is concerned, a net balance of -5% of respondents in Scotland report that instructions to sell declined through May. Whilst this is the third consecutive month this is in negative territory, it is up from the net balance of -25% seen in the survey previous.
Agreed sales were reported to have fallen with a net balance of -16% of surveyors in Scotland reporting a fall in newly agreed sales through May.
Looking ahead, a net balance of 5% of Scottish respondents expect house prices to rise over the next three months, while a net balance of 11% anticipate sales will increase during the same period.
Commenting on the sales market in Scotland, Greg Davidson MRICS of Graham + Sibbald in Perth, said, “The market continues to adjust, reflecting the pressures of affordability and increased costs of ownership, which is more noticeable in some sectors. There remains a continued underlying demand and with a reasonable availability of mortgages the market is quite stable despite continued uncertainty.”
Marion Currie ASSOCRICS, RICS registered valuer at Galbraith in Dumfries & Galloway, added, “May continued to see normal seasonal increase in properties coming to market, with buyers showing a measure of caution in premiums paid, as has been the pattern for some months.”
Commenting on the UK picture, Tarrant Parsons, RICS head of market research and analysis, said, “The latest survey data suggest the recent downturn in activity may be beginning to stabilise, with several key indicators broadly holding steady. However, as they remain in negative territory, it would be premature to interpret this as the start of a recovery.
“The decline in CPI inflation to 2.8% in April provided some temporary relief, but the Bank of England has signalled that further inflationary pressures are likely as higher energy costs continue to pass through. Against this backdrop, the prospect of further rate rises cannot be dismissed, and until there is greater clarity, market sentiment is likely to remain fragile.”
