The housing market in Scotland is facing an imbalance between demand and supply which is impacting on sales and pushing up prices.
The latest Royal Institution of Chartered Surveyors (RICS) market survey showed a net balance of +8% of respondents saying there was an increase in new buyer enquiries, although a net balance of -8% said there was a decrease in new instructions to sell; meaning an increase in demand for properties but a decrease in supply.
This is a trend that has been evident in the market in Scotland for the past seven months.
It consequently may have had an impact on newly agreed sales in February, with a net balance of -18% reporting a decrease in newly agreed sales. The lack of supply also appears to be pushing up prices.
A net balance of +74% of Scottish respondents reported price increases in the latest survey.
The results of the survey though showed optimism in the outlook for activity in the market, with a net balance of +25% expecting sales to increase, a similar trend which can be seen throughout the UK. Prices are also expected to continue rising according to a net balance of +46%.
RICS member David Cruickshank, a residential surveyor with DM Hall in Elgin, commented: “The local market is still characterised by the lack of supply - consequently, most sales are competitive, resulting in closing dates, multiple offers and increasing house prices.”
Phiddy Robertson, associate of RICS and part of the Galbraith Group in Inverness, stated: “There seems to be a hiatus in the market, we feel caused by sellers reluctant to list because they worry they won’t find a property to buy; but we expect things to ease as we move into spring”.
RICS member Thomas Baird, a director at Select Surveyors in Glasgow, added: “The residential market is still healthy in terms of demand for most central areas and surrounding, but the investor market is suffering a lack of supply, driving prices at the lower end upwards.”
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