The Elite Ayrshire Business Circle

The Elite Ayrshire Business Circle

Saturday, 30 August 2014

Demand for housing remains strong in Scotland

Demand for housing grows as new report calls for creation 
of new towns to meet needs of Scotland’s housing market.

Demand for new homes grew in July, with a net balance of 52% of chartered surveyors reporting a growth in new buyer enquiries, according to the July RICS Residential Market Survey. 

The number of homes coming onto the market increased in July, with 8% of respondents reporting an increase in new instructions, while on the demand side, Scotland bucked the national trend with 52% more respondents reporting an increase in enquiries (up from 33% in June). 

This continuing supply and demand imbalance is creating more optimism in the Scottish market compared to the rest of the UK. In July, 42% more respondents saw prices rise over the month and looking ahead, 32% of respondents expect house prices to increase over the next three months and 12 months expectations are for prices to rise by 3.3%. 

In London, both sales and new buyer demand fell more sharply than elsewhere, with enquiries falling at their fastest rate since April 2008 and a net balance of 10% more respondents reporting an increase in prices (down from 30% in June).

Sarah Speirs, Director RICS Scotland, said: “The housing market in Scotland continues to show an imbalance between supply and demand in Scotland and this impact prices. The independent Scottish Housing Commission published its recommendations to help improve Scotland’s housing market, with emphasis on establishing a sufficient quantity and quality of land for housing as a central recommendation. 

“With demand from new buyers at the highest rate since December 2013 and fewer properties coming onto the market, there is certainly the need for investment in regeneration and creation of new stock in order to keep prices at a sustainable level.”

Graham Tonner, Graham + Sibbald, Dundee, commented: “Sale prices in Tayside have been strong, however, there is still not enough stock coming to the market. More sales are at Home Report value compared to the last few years.”

Posted by the Elite Ayrshire Business Circle.

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