The Elite Ayrshire Business Circle

The Elite Ayrshire Business Circle

Wednesday, 8 October 2014

Scottish housing market stalls in September

RICS UK Residential Market Survey, September 2014

Demand dropped to lowest level since January 2013 during September, as referendum uncertainty hit  the Scottish market.

The number of new homes coming onto the Scottish market also decreased, with a net balance of 14 percent of respondents reporting a decline in new instructions, the lowest since September 2012.

Despite a the slow-down, greater confidence was evident with house prices, with a net balance of 33 percent of respondents reporting a growth in house price momentum in Scotland over the last three months. 

Sarah Speirs (pictured above), Director RICS Scotland, commented: “The effects of the referendum appeared particularly significant to the housing market during September, with a considerable drop in the number of interested buyers and stock coming onto the market. 

“Looking ahead, we expect to see an increase in supply and demand as the market settles, but with interest rates still at historically low levels and long-term house price expectations positive, households are not under any real economic pressure to sell. Next year, we expect the house price outlook to be far more subdued.”    

The longer term price forecast also looked positive with a net balance of 35 percent of respondents predicting price growth in Scotland over the coming three months and prices across the UK still expected to rise on average by 2.1% outside of London.

Kevin MacDonald, Inverness, Graham + Sibbald commented: “With the outcome of the referendum decided, it is now time to re-group and build upon the improvements seen in the market during the earlier part of 2014. Stability and security will be key factors to help maintain an active market through the winter.”

The slow-down in buyer activity stands in contrast to the Scottish lettings market, where demand has continued to grow solidly, despite new instructions to let not keeping pace with the rise in tenant demand.  

Chartered surveyors also noted the continued positive impact of the Home Report on the housing market in Scotland, with 70 percent of respondents reporting that it has reduced the need for multiple surveys. RICS continues to work with the Scottish Government during the five year review process which will conclude at the end of this year.

About RICS

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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