A net balance of five per cent of respondents in Scotland report that house prices rose in the July survey, which is the lowest this balance has been since the beginning of 2024. And surveyors are exercising caution on the outlook with prices expected to be flat over the next three months.

On the demand side, new buyer activity fell through July. A net balance of -29 per cent of Scottish surveyors reported that demand declined, falling from the net balance of -19 per cent that was seen in the June report.

Supply levels in Scotland also fell further into negative territory. A net balance of -30 per cent of Scottish respondents noted a decrease in new instructions to sell, which is the lowest this balance has been since June 2024.

Surveyors noted a decline in sales through July, which is perhaps unsurprising with demand and supply levels muted. A net balance of -13 per cent of respondents in Scotland noted a fall in newly agreed sales. And looking ahead, similar to pricing, respondents are hesitant on the sales outlook with a net balance of -6 per cent of Scottish surveyors expecting sales to fall over the next three months.

Commenting on the sales market in Scotland, Grant Robertson FRICS of Allied Surveyors Scotland Ltd in Glasgow said: “The market remains difficult to call. All indicators suggest a slowing market with repricing of stagnant stock rife, but well priced, fresh listings sell well. Fall through of chains is now of serious concern and this might just be the start of a slowing sales market.”

RICS chief economist, Simon Rubinsohn, said: “The housing market remains subdued, and while that is not usual over the summer months, it is clear from the RICS seasonally adjusted data, that the combination of geopolitics, the domestic political climate and the cost of mortgage finance are continuing to weigh on sentiment.

“Significantly, the forward-looking metrics also remain downbeat, which is not the sort of climate likely to encourage housebuilders to step on the gas on existing sites or in land-buying, as highlighted in recent trading statements from developers. Meanwhile, feedback from respondents to the RICS survey is continuing to draw attention to the impact of latest round of regulation on the rental market with the key indicator of new instructions pointing to a further drop in supply.”