The Elite Ayrshire Business Circle

The Elite Ayrshire Business Circle

Thursday, 17 October 2013

Demand in Scottish housing market remains firm

RICS September 2013 UK Residential Market Survey

In tandem with increasing demand from potential buyers, house prices continued to grow in Scotland with 32 percent more respondents reporting rises rather than falls, says the September 2013 RICS Residential Market Survey.

Prices have remained steady in Scotland since Easter and, significantly, this growth was seen right across the UK. Last month, every part of the country saw prices go up, with the exception of the North East of England where prices fell modestly for the second successive month. 

With the Scottish Government’s recent launch of Help to Buy in Scotland, sales expectations look positive with a net balance of 56 percent more surveyors predicting a rise in sales in the coming three months. Additionally, buyers continue to access the market and demand increased during September with a net balance of 78 percent more surveyors reported rises in new buyer enquiries. Although a lack of homes coming onto the market resulted in the number of new instructions failing to keep pace with the burgeoning level of demand. 

Sarah Speirs, Director RICS Scotland, said: “It’s encouraging that the market is starting to improve in all parts of the country with more buyers looking to make a move and more sales going through. Even so, it’s a big concern that the supply of property coming to the market is lagging so far behind demand, particularly with the recent launch of Help to Buy in Scotland. This imbalance is likely to result in further upward pressure in prices over the coming months, particularly in popular areas.” 

Across the UK, each region saw supply increase as the recovery continues to spread from the South East of England to other areas. The South West and the North East, in particular, saw the number of new homes coming onto the market rise significantly. 

Craig Henderson, Graham & Sibbald, Glasgow and West Scotland, commented: “The market has continued to perform well within the established good markets, with competitive interest and closing dates in the good market locations. Prices are showing some modest uplift as a result and are close to Home Report Values.”

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.

In a world where more and more people, governments, banks and commercial organisations demand greater certainty of professional standards and ethics, attaining RICS status is the recognised mark of property professionalism.

Over 100 000 property professionals working in the major established and emerging economies of the world have already recognised the importance of securing RICS status by becoming members.

RICS is an independent professional body originally established in the UK by Royal Charter. Since 1868, RICS has been committed to setting and upholding the highest standards of excellence and integrity – providing impartial, authoritative advice on key issues affecting businesses and society. RICS is a regulator of both its individual members and firms enabling it to maintain the highest standards and providing the basis for unparalleled client confidence in the sector.

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