Source: Scottish Housing News
House prices in Scotland continued to rise during October, with surveyors expecting the upward trajectory to continue despite some uncertainty relating to the upcoming UK Budget.
A net balance of 34% of respondents to the September Royal Institution of Chartered Surveyors (RICS) Residential Market Survey in Scotland report that prices rose in the latest report, up from the 27% that was seen in September. A net balance of 31% of Scottish survey respondents anticipate a further increase over the next three months.
House sales in Scotland are also expected to rise over the next three months, albeit at a slower rate than seen previously. A net balance of 30% of survey respondents in Scotland expect sales to increase, down from the 56% seen in the previous survey.
This outlook is perhaps linked to a slowdown in homes becoming available for sale. Surveyors in Scotland report that instructions to sell were marginally fewer in number in October. A net balance of –3% of Scottish surveyors report that new instructions to sell fell last month.
The number of newly agreed sales was also marginally lower in October, perhaps reflecting the lower levels of new instructions to sell as well as some hesitancy in the market linked to uncertainty around the upcoming budget.
Commenting on the sales market, Craig Henderson, MRICS of Graham & Sibbald Property Consultants Limited in Ayrshire, said: “The market has remained consistent with the rest of the year to date. Demand has continued to outstrip supply, buyers are a little cautious, but most are happy to pay a fair price in most areas. Prices have continued to rise gently through the year for most houses, but less so for flats.”
Greg Davidson, MRICS of Graham + Sibbald in Perth, added: “The market is stable and performing reasonably well but continued political and budget uncertainty is making it difficult for people to plan and this is causing hesitancy. So market activity may be subdued in the short term before it normalises again in 2026.”
Commenting on the UK picture, RICS head of market research & analytics, Tarrant Parsons, said: “The housing market continued to show weakness in October, with activity levels drifting lower amid a lack of buyer confidence. Ongoing uncertainty surrounding potential measures in the upcoming Budget are thought to be compounding the cautious mood among both buyers and sellers, while above target inflation and rising unemployment are also a negative for the market.
“The coming months will be crucial in assessing how the market responds to the Budget, which could prove a turning point in either direction. Greater clarity over housing taxation policy may help stabilise sentiment, but if the measures announced add further pressure to activity, they risk deepening the current slowdown.”
Source: Scottish Housing News
