Wednesday, 12 February 2014
Demand for homes in Scotland continues to outstrip supply
RICS UK Residential Market Survey, January 2014
During January, the number of houses coming onto the market for sale in Scotland remained steady, says the RICS January Residential Market Survey.
Last month a net balance of 27 percent more chartered surveyors reported an increase in new instructions. Despite this, the amount of potential buyers continued to surge ahead of supply for the ninth consecutive month, with a net balance of 37 percent of respondents reporting a growth in demand. However, some surveyors note that supply is expected to increase as we enter the traditional ‘spring bounce’.
With the gap between steady supply and rising demand not seeing any considerable change, house prices continued to grow. During January, a net balance of 38 percent more respondents across Scotland reported an increase in prices, with the cost of a home now rising since May 2013.
Chartered surveyors also noted the continued positive impact of the Home Report on the housing market in Scotland, with 78 percent of respondents reporting that it has reduced the need for multiple surveys.
Sarah Speirs, Director RICS Scotland, commented: “Prices are on the up in Scotland and this is driven largely by a lack of properties coming onto the market. With a growing number of people now in a position to buy a home, there are simply not enough properties to satisfy demand. The upshot of this is that prices are increasing in many areas. However, RICS members do expect an increase in supply in the coming months as the traditional spring bounce begins to take effect.
“RICS Scotland continues to work closely with the Scottish Housing Commission to address the issues of housing supply and demand in Scotland. The Commission’s findings will be published in April 2014.”
Looking ahead, the more positive outlook continues with a net balance of 49 percent more chartered surveyors predicting transaction numbers in Scotland to increase over the coming three months, while expectations for future prices are also strongly positive.
Kevin J MacDonald, Graham + Sibbald, Inverness, commented: “Momentum has been maintained during January which is indicative of rising confidence with competitive bids, closing dates and more encouraging prices.”