Monday, 9 December 2013
Expectations for house price growth continue to rise in Scotland
Expectations for future house price growth in Scotland continued to rise during November as the amount of homes coming onto the country’s market, once again, fell well short of rapidly rising buyer demand, according to the November 2013 survey released by RICS Scotland (Royal Institution of Chartered Surveyors).
52 percent more chartered surveyors across Scotland predict prices to continue their upward trend rather than fall back over the coming three months. This is the highest reading since July 2007 and demonstrates the impact that the recovery in demand, together with limited supply, is having on the housing market.
Meanwhile, last month saw prices remain steady, with a net balance of 42 percent more respondents reporting price growth in Scotland. Significantly, each region of the United Kingdom saw prices rise for the second successive month. While there are still some areas of the UK that are struggling, it appears that, on the whole, the UK markets are now responding to the incentives provided by governments and better economic news.
Sarah Speirs, Director RICS Scotland, commented: “It’s no secret that the housing market is on the way up and prices are rising in many parts of Scotland. We are still very concerned about the lack of both new and existing homes coming on to the market. This issue is one of many which the Scottish Housing Commission, launched by RICS Scotland earlier this year, will seek to address and we will publish our report findings in early 2014.”
Looking ahead, with the economic recovery gaining traction across Scotland, predictions for the rate of increase in future transaction levels hit a record level. A net balance of 78 percent of surveyors expect sales levels to increase as we head into the New Year, assisted, in part, by the Scottish Government’s Help to Buy.
Rory Ballantyne MRICS, Ballantynes Edinburgh, commented: “The recent Help to Buy announcements have continued to boost buyer confidence in the Scottish housing market, with sales volumes up significantly across both our established homes and new build developments.”