HOUSE prices in Scotland have continued to marginally rise, according to the balance of respondents to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey.
A net balance of 5% of respondents in Scotland report that prices rose in the July survey, which is the lowest this balance has been since the beginning of 2024. Prices are expected to be flat over the next three months.
On the demand side, new buyer activity fell through July. A net balance of -29% of Scottish surveyors reported demand declined, falling from the net balance of -19% in the June report.
Supply levels in Scotland also fell further into negative territory. A net balance of -30% of Scottish respondents noted a decrease in new instructions to sell.
Surveyors noted a decline in sales through July, with a net balance of -13% of respondents reporting a fall in newly agreed sales. A net balance of -6% of Scottish surveyors expect sales to fall over the next three months.
Commenting on the sales market in Scotland, Grant Robertson FRICS of Allied Surveyors Scotland Ltd in Glasgow said, “The market remains difficult to call. All indicators suggest a slowing market with repricing of stagnant stock rife, but well priced, fresh listings sell well. Fall through of chains is now of serious concern and this might just be the start of a slowing sales market.”
Ian Morton MRICS of Bradburne & Co in St Andrews added, “The traditional slow down due to school holidays has been further slowed by a hesitancy in sellers listing their property for sale. More properties are having offers over prices reduced as the market slows.”
In regards to the rental sector, Craig Henderson MRICS, of Graham & Sibbald Property Consultants Limited, in Ayrshire, noted, “There remains an excess of demand over supply, which continues to drive rents up in almost every area. There are no signs that this will not continue for the foreseeable future.”
Commenting on the UK picture, RICS chief economist, Simon Rubinsohn, said, “The housing market remains subdued, and while that is not usual over the summer months, it is clear from the RICS seasonally adjusted data, that the combination of geopolitics, the domestic political climate and the cost of mortgage finance are continuing to weigh on sentiment. Significantly, the forward-looking metrics also remain downbeat, which is not the sort of climate likely to encourage housebuilders to step on the gas on existing sites or in land-buying, as highlighted in recent trading statements from developers.”
