THE outlook for Scotland’s housing market remains ‘relatively positive’, despite a lower level of sales and listings in recent months, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey.
A net balance of 55% of Scottish respondents expects sales to rise over the next three months, and a net balance of 10% expects prices to continue increasing through the last quarter of the year.
This follows a relatively downbeat past few months for activity, according to the survey. In the September report, a net balance of -2% of Scottish respondents reported that new instructions to sell fell, and a net balance of -18% reported that newly agreed sales were lower. This is in line with the UK-wide picture for September, where expectations of a rise in interest rates led to a lower level of agreed sales last month.
However, underlying demand appeared to be relatively strong in Scotland – even if this hasn’t been translating into more agreed sales, RICS said. A net balance of 36% of Scottish respondents noted that there was a rise in the number of new buyer enquiries in September, markedly up from the net balance that was seen in the August survey.
Despite lower sales and listings in September, prices continued to edge up. A net balance of 13% of respondents in Scotland reported that prices rose over the past three months, which is up from the net balance of 6% that was seen in August’s survey.
Jake Shaw-Tan MRICS, of Goose & Co Property in Ayrshire, commented, “The market in Ayrshire for distinctive property remains strong with many buyers seeking family homes. Where property is priced sensibly and presented well, we are seeing good results being achieved.”
Marion Currie ASSOCRICS, of Galbraith in Dumfries & Galloway, added, “September saw a general quietening. But this ties in with the usual market in Dumfries and Galloway for the time of year. Price reductions have seen stalled properties find success, leading to a more cautious approach with new listings.”
Grant Robertson FRICS, of Allied Surveyors Scotland Ltd in Glasgow, said, “The rental market remains soft with rents achieved often at or often below levels set sometimes some years ago. Supply however remains constricted as landlords continue to exit an overregulated market with restricting tax advantages and increasing lending rates.”
RICS head of market research and analysis, Tarrant Parsons, commented, “A renewed rise in interest rate expectations has created a fresh headwind for the housing market, with buyers becoming a little more cautious and sales activity losing some momentum this month. Even so, the latest results do not point to any significant shift in direction. Rather, they suggest the market may need to contend with a somewhat longer period of subdued activity as households adjust to the prospect of borrowing costs remaining higher than previously anticipated.”
