Scottish housing prices continue to climb despite weak market activity
Last month, housing market activity in Scotland remained weak with falls in new buyer demand and listings, however, house prices are still edging upwards according to respondents in the latest RICS (Royal Institution of Chartered Surveyors) Residential Market Survey.
A net balance of -5% of respondents reported that new buyer demand fell through February. Although this figure has remained in negative territory, in February demand fell at the slowest rate since April 2022.
Looking at supply, a net balance of -8% of respondents stated that they saw a decrease in new instructions to sell, this is compared to -53% of respondents who reported a fall the month previous.
With both demand and supply lower, sales were also reported to be falling back, with a net balance of -13% of respondents reporting a fall in sales through the month of February.
Looking at pricing, prices were still rising in Scotland according to the latest report, albeit at a moderate pace. A net balance of 14% of respondents saw prices increase, making Scotland one of only two UK regions where prices are still edging upwards.
Over the next three months, a net balance of -13% of respondents expect prices to fall. Though on a 12-month horizon, Scotland and Northern Ireland are the only UK regions expecting both sales and prices to be higher in a year’s time.
Thomas Baird MRICS of Select Surveyors in Glasgow said: “Market conditions have improved slightly over the February period, as there is an increase in survey instructions compared to January.”
Ian Fergusson FRICS of Shepherd Chartered Surveyors added: “The Scottish residential market has remained resilient. Demand is stable and prices level are showing slight growth.
“Confidence is returning with the outlook positive on base rates and more importantly mortgages rates lowering in the short term as inflation looks likely to fall.”