House prices in Scotland rise at fastest rate in two years and surveyors expect sales to increase – Scottish Business News

RESIDENTIAL property prices in Scotland rose at the fastest rate since mid-2022 according to the results of the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey, and Scottish surveyors expect sales and prices to rise over the next three months.

A net balance of 39% of surveyors in Scotland reported that house prices rose through the month of August. This is the ninth consecutive month this figure has been in positive territory, and the highest the balance has been since July 2022.

Looking forward, a net balance of 13% of respondents in Scotland anticipate that prices will rise over the next three months too.

Whilst new buyer enquiries were reported to have fallen in August, with a net balance of -13% of Scottish surveyors reporting a fall, a net balance of +22% of respondents expect sales to pick up in the three months ahead.

A challenge remains on the supply side though, with respondents in Scotland reporting that new instructions to sell fell flat in the most recent survey, down from 14% in July.

On the lettings front, demand continued to rise through August, however at a slower rate than seen previously. A net balance of 17% of surveyors in Scotland reported a rise in demand for rental properties, down from 33% the two consecutive months previous.

Supply in the lettings market is reported to have risen with a net balance of 17% of Scottish respondents noting a rise, the highest this balance has been since early 2022. As such, the rate in which surveyors were anticipating rents to rise is also more subdued, with a net balance of 33% of Scottish respondents anticipating rents to rise over the next three months, down from 50% the two consecutive months previous.

Commenting on the sales market Alan Kennedy, MRICS of Shepherd Chartered Surveyors in Fraserburgh said: “Locally, certain sectors of the market are performing well, notably modern bungalows, whilst other sectors are less active. Well-presented properties are typically selling well, at or close to Home Report value in the current market.”

Thomas Baird, MRICS, Select Surveyors in Glasgow, added: “We have seen a slight slowdown in home report instructions which may be due to end of summer and school returns.”

Discussing the rental market, Grant Robertson, FRICS of Allied Surveyors Scotland Ltd, in Glasgow commented: “There has been a very clear lull in tenant demand this summer and more so than usual. Some rents are softening especially those set around one year ago. However, supply remains restricted and once the summer recess is over, I expect stock to fall and upward pressure on rents to return.”