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.
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