‘House sales pick-up across Scotland likely to continue through autumn’ -RICS

Agreed sales rose throughout Scotland last month, with 32 per cent more chartered surveyors seeing an increase.

Across the UK the market saw sales growth hit a 16 month high, marking the fifth consecutive month in which transactions have increased, with the North, East Anglia, and Scotland posted the sharpest rises in activity during September.

The stronger sales trend is broadly reflective of an upturn in demand which has been visible in the Scottish market data for the majority of 2015. Indeed, the number of new buyer enquiries rose with 23 per cent more chartered surveyors reporting a rise in demand last month.

The pattern being seen by chartered surveyors echoes recent lending data including that highlighted by the Bank of England showing mortgage approvals at an eighteen month high and up 12 per cent compared to a year ago.

As the availability of mortgage finance appears to be improving, the average ‘perceived’ LTV ratio captured by respondents to the RICS survey edged up to at 79.3 per cent with first time buyers seeing credit conditions relax most noticeably over the month.

In addition to activity picking up, September saw a welcomed increase in new instructions with a net balance of 16 per cent more respondents in Scotland reporting an increase in properties coming on to the market. Significantly, 31 per cent of respondents in Scotland feel the biggest factor constraining new instructions is the lack of stock already for sale which is deterring would be movers as they struggle to find a suitable property to move on to.

Despite the increase in new instructions, supply is still falling behind demand. Consequently, RICS data shows Scottish house prices continued to rise, likely to be reflected in key house price indices over coming months and into the first half of 2016.

Sarah Speirs, Director RICS in Scotland, said: “Activity is now picking up which is encouraging and we are seeing slight improvements in stock coming on to the market, although this is still falling short of demand. Against this backdrop, we expect prices to move higher over the coming months.”

In the Scottish lettings market, tenant demand increased once more while new landlord instructions, although positive, were still significantly outstripped by tenant demand. As a result longer term forecast suggest continued rises in rents throughout 2016.

Gillian Munro MRICS, Graham + Sibbald, added: “September has been a stable month for new instructions coming on to the market. This is expected to continue into the autumn months.”