Monday, 13 September 2010
House prices in Scotland remain stable - unlike rest of UK
SCOTTISH chartered surveyors report that the housing market in Scotland remains more or less stable on the pricing front, with a modest increase in the net price balance to +2% in August compared with +1% in July.
[Pictured: RICS Scotland deputy director Sarah Speirs.]
Surveyors still expect prices to rise, albeit at a modest rate (+4%) over the next three months, and Scotland is the only part of the UK where this is expected to happen, says the latest RICS UK Housing Market survey.
Although demand is now showing signs of softening (the net balance for new buyer enquiries posted its second consecutive negative reading), prices remain supported by continued falls in supply (the net balance for new instructions posted its fourth consecutive negative reading).
Sales activity continued to increase in August, but admittedly, at a slower pace than in July; the newly agreed sales net balance fell from +64 to +11. Rising sales activity in Scotland contrasts with the rest of the UK, where it is now falling (the net balance was -20).
Commenting, RICS Scotland deputy director Sarah Speirs said: “What we are reporting is a levelling out of the Scottish market, which puts us at odds with the rest of the UK. Demand is starting to weaken, but prices are being supported by continued falls in supply.
“Surveyors in Scotland are confident that prices will rise moderately over the next three months. However, the situation as ever is fluid and highly dependant on the scale of public sector spending cuts and the performance of the wider economy.”
RICS housing market survey is the longest running monthly survey of house prices in the UK, collecting data since January 1978. The survey is cited by the Bank of England's monetary policy committee at its monthly interest rate setting meetings.
About RICS Scotland
RICS Scotland is a national association of RICS. RICS Scotland has over 10,000 members. Managed from its offices in Edinburgh, the focus of RICS Scotland is to develop, maintain, uphold and promote the standards, knowledge and skills of its members always acting in the public interest.
RICS Scotland enjoys a degree of autonomy due to differences in Scottish law and practice. It holds a significant role within the professional and business community in Scotland, working with central and local government and educational institutions in Scotland.
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