Supply and demand rise in April as Scottish housing market picks up - RICS

The supply of Scottish residential properties coming on to the market increased for the first time in three months during April, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey.

Despite a net balance of 8 percent more respondents reporting an increase in new instructions, demand for residential property also grew, outpacing new supply and continuing to push price expectations higher. A net balance of 26 percent more chartered surveyors expect Scottish house prices to rise over the next three months.

Sales remained steady across the country in April and the growth in activity is expected to continue, with a 36 percent more respondents (net balance) predicting an increase in Scottish residential property sales over the next three months.

Director RICS in Scotland, Sarah Speirs, said: “We are seeing a welcome increase in properties coming on to the market and we hope this will continue in coming months. However, as demand also continues to grow, this supply will not meet market needs and we call on the newly elected Scottish Government to make the increase of housing supply across all tenures a priority.”

In the lettings market, tenant demand continues to rise and there was a noticeable decrease in new landlord instructions during Q1 2016. Consequently rents are expected to increase further during the next three months.

Andrew Hitchen MRICS, Shepherd Surveyors, said: “The market continues to be restrained by a lack of new vendor instructions. Shortened sales periods and rising values are being driven by lack of stock.”