08 Dec House Prices and Private Rents Expected to Continue to Increase into 2017
House prices in Scotland continue to increase mainly due to a lack of homes on the market, estate agents have said. Prices have been rising since early 2013 and the trend is forecast to continue for the next 12 months.
The RICS Residential Market Survey found that while the number of prospective buyers in the Scottish housing market had increased for the second consecutive month in November, 21% more surveyors reported an increase in the number of new buyer enquiries rather than a decline, sales were fairly consistent over the month, while 5% more surveyors actually reported a dip in transaction volumes.
Shortages in supply remained constistent across Scotland throughout November and growth in demand, albeit only modest, alongside a lack of new instructions, has led to a further increase in house prices.
As the volume of properties coming to market continues to dwindle, the headline RICS price balance for Scotland continued to signal rising prices with 26% more respondents seeing growth, extending a continual price growth dating back to 2013. According to the market survey, house prices are expected to rise over the coming three months with 25% surveyors foreseeing an increase.
In the lettings market, tenant demand (non-seasonally adjusted) rose at a more moderate pace, as is usual around this time of year, with 15% more contributors reporting a rise rather than a fall. Meanwhile, new landlord instructions fell slightly at the headline level with 6% more contributors seeing a decline rather than a rise. Tenant demand continues to outpace supply across most areas and rent expectations remain firmly in positive territory, with 17% more respondents forecasting further growth rather than a fall.
Simon Rubinsohn, RICS chief economist, said: “A key issue for the housing market is the slowdown in transaction activity since the spring which is clearly being reflected in the RICS Agreed Sales data as well as in official figures.
“Although there are some signs that the numbers may begin to edge upwards in the New Year, the combination of macro uncertainty, the on-going supply shortfall, with stock levels around historic lows, and the myriad of tax changes impacting on buyers suggest that any pick-up in activity will be relatively modest.
“This is significant not just for the housing market itself but also for the wider economy given how much of consumer spending is tied in with home purchases.”
If you are thinking of selling your property, your first step in getting onto the market will be to have a Home Report carried out.We provide home reports across Scotland – including Edinburgh, Glasgow and Aberdeen – at a time that suits you. Give us a call on 0131 608 0175 or drop us an email at email@example.com