RICS: Outlook For Scottish Housing Market Improves As Sales And Prices Fall At Slower Rates
The housing market in Scotland remains subdued, with sales, instructions and prices all in decline, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey.
However, the rate at which sales and prices are falling has eased in the past month, and surveyors are more upbeat about both the short-term and longer-term outlook than they were previously.
A net balance of -5% of respondents to the latest survey in Scotland said that house prices fell over the past three months. Although this remains in negative territory, it is an improvement compared to -18% in September and -17% in August. Scotland’s price balance also continues to be in a much stronger position than the overall UK figure of -63%.
Indeed, respondents in Scotland now expect sales to increase over the next three months for the first time since April 2022. A net balance of 31% of respondents anticipate sales to rise compared to -10% in September.
On a 12-month horizon, a net balance of +17% of Scottish respondents expects prices to be higher in a year’s time, and +4% expects sales activity to be higher.
Regarding the Scottish lettings market, the imbalance between demand and supply continues. A net balance of 17% of surveyors reported that there was a rise in tenant demand, whilst respondents noted a continuing sharp fall in new lettings coming onto the market.
The lack of supply for the high levels of demand is continuing to drive prices up with a net balance of 46% of surveyors in Scotland anticipating rents to increase over the next three months.