Surveyors expect house prices and rents to continue upward trajectory



House sale stock 3House prices in Scotland continued to go up last month with further increases expected over the next three months, surveyors have reported.

The December Residential Market Survey by the Royal Institution of Chartered Surveyors (RICS) found that 32 per cent more chartered surveyors reporting a rise rather than fall in prices last month, up from 27 per cent in November.

The RICS said the increase in prices was possibly down to the lack of supply.

According to the survey, the number of house sales across Scotland “faltered” in December, although predictions for expected new sales over the next three months remained steady.

The survey found that 2 per cent more chartered surveyors saw a fall rather than a rise in sales across Scotland last month.

New instructions to sell also failed to see any pick-up, marking the eighth straight month of declining supply.

Respondents to the survey continued to highlight low stock levels as a key concern, creating a lack of choice for would-be buyers, while a shortage of properties to let is driving rent expectations higher with respondents projecting rental growth to average close to 5 per cent per annum over the next five years.

Simon Rubinsohn, RICS chief economist, said: “A familiar story relating to supply continues to drive both the sales and lettings markets impacting on activity, prices and rents. The latest RICS survey provides further evidence that both price and rent pressures are continuing to spread from the more highly valued to more modestly valued parts of the market for good or ill.”

Tags: PRS, RICS



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