Shortage of homes for sale pushes up Scottish prices

A net balance of +21 per cent of Scottish surveyors responding to the survey said that house prices rose in January, which was above the UK figure of +8 per cent.

This comes as Scottish surveyors (a net balance of -12 per cent) report a fall in the number of homes becoming available for sale; this is the tenth consecutive month that the data for new instructions to sell has been in negative territory.

With new buyer enquiries continuing to increase, albeit at a slower rate than at the end of last year, according to the balance of respondents, this suggests that there is a widening gap between availability and demand that will exacerbate supply constraints.

However, Scottish surveyors says they remain relatively upbeat about the three-month outlook for the market.

A net balance of +32 per cent expect sales activity to increase in the February to April period and a net balance of +7 per cent expect prices to rise in that timeframe.

The headline price balance for Scotland was +21 per cent in the latest survey, meaning that 21 per cent more surveyors said that prices rose in the past three months than those who said they fell.

The three-month price expectations balance, at +7 per cent, eased back from December’s figure but remains positive. Meanwhile, three-month sales expectations data at +32 per cent was firmly positive.

Newly agreed sales (-16 per cent) fell in January according to the balance of respondents, whilst there was an increase in new buyer enquiries (+8 per cent). Instructions to sell also fell back (-12 per cent).

RICS director in Scotland, Gail Hunter, said: “Surveyors remain positive about the prospects for the housing market in Scotland. However, they also point to a shortage of properties becoming available for sale, which will have a constraining effect on sales activity and potentially push up prices further. Anecdotally, surveyors continue to report that the changes to LBTT are having an ongoing negative impact on instructions to sell in the middle to the prime brackets of the market, and this is having detrimental trickle-down effect in other house price brackets.”

Grant Richardson of Allied Surveyors in Glasgow, said: “The level of stock in the West End is at a historic low. Current sales numbers can’t be sustained without restocking.”