The Elite Ayrshire Business Circle

The Elite Ayrshire Business Circle

Saturday, 13 August 2011

Scottish housing market ‘holiday’ continues

RICS July 2011 UK Housing Market Survey

The Scottish housing market remained in holiday mode in July, with a slowdown of the number of properties coming on to the market, says the latest RICS UK Housing Market survey.

[Pictured: RICS Scotland director Graeme Hartley.]

New instructions to sell, which saw a slight upturn during the early part of the summer in Scotland, fell back in July. With 26% of chartered surveyors reporting house prices in Scotland had slipped in July it appears that many potential vendors are unwilling to accept reduced selling prices, so are reluctant to enter the market.

Nine percent of surveyors said prices had risen in Scotland in July while 61% said they had stayed the same. It’s a similar picture across the rest of the UK with the exception of London where 44% said prices had risen and 46% said they had stayed the same.

The number of potential buyers enquiring about property for sale edged up in July with 4% more surveyors saying inquiries had increased but numbers are low compared to earlier in the year, but not unusual for this time of year.

Looking ahead, pessimism still surrounds future house price expectations in Scotland. Eight per cent more surveyors predict prices to decrease rather than increase over the next three months. However, sales expectations are a little more upbeat, with 5% more respondents predicting sales to rise rather than fall over the coming three months.

Commenting, RICS Scotland director Graeme Hartley, said: “The market has remained flat over the past month, which is not unusual for this time of year. Additionally the continual problem of inaccessible mortgage finance is still preventing first time buyers from accessing the market. Chartered surveyors in Scotland expect buyers to return once the traditional holiday period comes to an end but sellers need to price their property realistically to attract these buyers.”

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 11,000 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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