Lack of supply ‘driving up’ Scottish house prices

The organisation’s October RICS UK Residential Market Survey found that while the number of potential buyers had risen for the second month in a row, the number of properties coming on to the Scottish market continued to drop, that has been visible in Scotland for the past year.

Across Scotland, interest from prospective homebuyers increased for the second month in the last three with 14 per cent more respondents reported a rise in demand from buyers in October rather than a fall.

Prices continue to rise, with a net balance of 40 per cent more respondents seeing growth, rather than a decline, up from a net balance of +33 in September.

The survey also predicted rent rises for tenants over the next three months as demand outpaced supply.

Gavin Miller MRICS, Graham + Sibbald, said: “There is a lack of new properties coming on to the market. This has resulted in strong prices being achieved, with many of the more desirable properties selling at closing date.”

As activity recovers post EU vote, agreed sales rose across Scotland with 13 per cent more chartered surveyors seeing activity rise rather than fall in October. Expectations for the months to come have also improved with a net balance of 41 per cent of respondents forecasting a rise in Scottish transaction levels.

RICS chief economist, Simon Rubinsohn, said the lack of housing supply in Scotland was replicated across the UK.

He said: “The dire shortage of available housing across the UK is continuing to push prices upwards, regardless of the uncertainty linked to the ongoing discussions surrounding Brexit. We are only weeks away from the Autumn Statement, and it will be interesting to see what measures – if any - the Chancellor will put in place to increase housing supply and create a more affordable market.”