Tuesday, 16 July 2013
Prices rise and demand remains stable as Scottish property market begins to recover
The Scottish housing market continued to show signs of recovery during June, with rising house prices and sustained demand for new properties, says the latest RICS Residential Market Survey (9 July 2013).
[Pictured: Sarah Speirs, Director RICS Scotland.]
16 per cent more chartered surveyors reported prices rose rather than fell in June. The outlook for future prices is also strong, with 31 per cent more respondents reporting that prices will rise rather than fall over the coming three months.
This rise in prices has mainly been fuelled by increasing numbers of prospective buyers returning to the market. Last month, a net balance of 59 per cent more chartered surveyors reported a rise in new buyer enquiries. Reflecting recent optimism in the Scottish housing market, 68 per cent of chartered surveyors reported a rise in newly agreed sales in June.
Despite the increasing appetite to purchase property and the added support to do so, the rental market continues to be important in providing housing. Overall demand for rented property rose slightly during June, to a net balance of 25 per cent (from 23 per cent).
Sarah Speirs, Director RICS Scotland, commented: “We are finally starting to see what looks like the beginning of a recovery in the housing market, with a rise in newly agreed sales. It is important to remember that activity levels still remain depressed by historic standards but the various initiatives designed to encourage the provision of finance into the market do appear to be paying dividends.
“Despite the continued interest in buying a property, figures continue to show that demand from would-be tenants remains firm, and that rents are likely to continue to edge upwards over the next twelve months. As the cost of shelter moves higher, it is important that the Scottish Government support the delivery of more new homes into the market and introduces further regulation to protect the growing private rented sector.”
Peter McEachran FRICS, Graham & Sibbald, Renfrewshire, commented: “There are distinct signs of an improvement in market conditions. Houses are now selling within three months of going on the market, some with closing dates. The general mood is more optimistic than before, and this bodes well for the rest of the year.
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.
RICS is the world’s leading qualification when it comes to professional standards in land, property and construction.