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NEW research has revealed that house prices in Scotland ‘edged up’ in August despite demand falling flat.
The findings are reported in the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey, with surveyors optimistic that sales will rise in the coming months.
A net balance of -2% of surveyors in Scotland was reported for new buyer enquiries in August, following a period of four months when this balance was positive. Supply was also constrained, with a net balance of -6% of surveyors in Scotland reporting new instructions to sell fell through August.
A net balance of -20% of surveyors reported that sales declined, which is the lowest this balance has been in over a year. However, a net balance of 29% of surveyors expect sales to increase over the next three months.
In terms of price, a net balance of 36% of surveyors in Scotland report that prices rose over the last three months. Looking ahead, a net balance of 34% of respondents anticipate prices will continue rising over the next three-month period.
Regarding the rental market, a net balance of 25% of respondents in Scotland expect tenant demand to rise, while a net balance of -75% expect landlord instructions to fall. In turn, a net balance of 25% of surveyors anticipate rents will rise over the next three months.
Commenting on the sales market, Marion Currie, AssocRICS, RICS registered valuer, of Galbraith in Dumfries & Galloway, said, “Summer has continued to be a tale of good listings at sensible prices doing well, some fall-throughs still threatening and occasionally happening, but on the whole a positive outlook as we head into early autumn.”
Discussing the rental market, Carolyn Davies, MRICS, of Savills in Dumfries added, “Continued market evidence of landlord leaving the sector both at end of tenancy and also now terminating tenancies to sell property. Marketing of attractive well-maintained properties continue to generate significant interest and multiple applications for a single property.”
Commenting on the UK picture, Tarrant Parsons, head of market research and analysis at RICS, said, “With buyer demand easing and agreed sales in decline, the housing market is clearly feeling the effects of ongoing uncertainty. Concerns over the wider economic and fiscal outlook, combined with questions around the future path of interest rates amid stubbornly high inflation, are weighing on sentiment at this time.”