A net balance of 30 per cent of surveyors in Scotland reported that house prices increased over the past three months, the eighth consecutive month where this figure has been in positive territory.

Looking forward, Scottish respondents anticipate that prices will continue to increase with a net balance of 14 per cent of surveyors expecting a rise in prices over the next three months.

Supply levels were reported to have risen through July. A net balance of 19 per cent of surveyors in Scotland reported that new instructions to sell increased in the most recent survey, up from -40 per cent that was seen in June.

Regarding demand, a net balance of four per cent of surveyors reported that new buyer enquiries rose through the month of July, up from -23 per cent in June, and three per cent in May.

Although demand and supply edged upwards through July, sales were reported to have fallen, albeit at a slower rate than seen previously. A net balance of -4 per cent of Scottish respondents reported that sales fell in the most recent survey, however this is up from -16 per cent that was seen in June.

In line with the increase in supply and positive demand, Surveyors in Scotland are though more optimistic on the sales outlook as a net balance of 23 per cent of respondents anticipate that sales will rise over the next three months.

On the lettings front, a net balance of 33 per cent of Scottish surveyors reported that demand for rental property rose, as a net balance of -20 per cent noted that supply fell, so it is unsurprising that given the imbalance between supply and demand that a net balance of 50 per cent of respondents anticipate rental prices will rise over the next three months.

Commenting on the UK picture, RICS chief economist, Simon Rubinsohn, said: “The new government’s focus on boosting housing development alongside the recent quarter point base rate cut does appear to have shifted the mood music in the sales market, with projections for both near and medium activity picking up according to the latest RICS Residential Market Survey.

“Inevitably, significant challenges lie ahead in delivering on the ambitions around planning reform and it is far from clear that the Bank of England will follow the August move with further easing over the coming months, but, even so, the policy mix is becoming more supportive for the sector.

“However, if there is a bit more hope regarding the sales market, the difficulties in the lettings market remain as intense as ever with little prospect of any relief in sight. Demand is continuing to run ahead of supply with many respondents to the RICS survey noting that landlords are looking to reduce holdings in the face of an increasingly hostile environment for investment in the sector.”