A net balance of 33% of survey respondents in Scotland reported that sales rose through the month of October, the highest the balance has been since October 2020. Scotland’s balance for sales is the third highest across all UK regions, after Northern Ireland and the North West.

Meanwhile, demand from new buyers in Scotland increased at the fastest rate seen in over three years. A net balance of 33% of Scottish respondents reported a rise in enquiries from new buyers through October, the highest this balance has been since mid-2021.

Supply levels were also reported to have risen through October. A net balance of 21% of Scottish respondents reported an increase in new instructions to sell.

This may be leading surveyors to remain optimistic on the outlook. A net balance of 31% of respondents in Scotland anticipate sales will rise over the next three-month period.

On the pricing front, a net balance of 45% of surveyors note that prices have risen over the past three months. Looking forward, a net balance of 34% of surveyors in Scotland anticipate that prices will rose over the next three months.

Regarding the rental market, surveyors in Scotland report that both demand and supply fell flat through October. Whilst Scottish respondents anticipate that rents will rise over the next three months, a net balance of 20%, this is down from the net balance of 40% reported in September.

Commenting on the sales market, Thomas Baird MRICS of Select Surveyors in Glasgow, said: “The recovering Scottish housing market is largely in line with UK due to lower mortgage rates and increased market activity. There is still a lack of supply feeding increasing prices in certain areas.”

Discussing the rental market, Grant Robertson FRICS of Allied Surveyors Scotland Ltd in Glasgow, added: “Rents have definitely dropped from the levels set 12-18 months ago. Not by much and it’s more noticeable on the upper end of the market both in terms of quality and location.

“It was simply overheated, and we have seen a reset. With further reduction in available stock, it is likely rents will press upwards.”

Commenting on the UK picture, RICS head of market analysis, Tarrant Parsons, said: “The UK housing market saw a continued pick-up in activity through October, with the recent improvement in buyer demand translating into growth in the number of sales being agreed.

“Just as importantly, forward-looking sentiment points to this brighter trend remaining in place of the coming months. That said, the rise in bond yields following the Budget, alongside a general increase in financial market implied interest rate expectations over the past couple of weeks, will likely present something of a headwind for the market to contend with over the short term.”