RICS: House prices continue to rise as demand falls

Demand for residential property fell for the sixth consecutive month in Scotland, with a internet stability of -45 per cent of respondents reporting a fall in new purchaser enquiries. A internet stability of -48 per cent of surveyors reported that newly agreed gross sales fell within the month of October.

provide ranges, these additionally appeared to have eased within the final month with a internet stability of -43 per cent of respondents stating new directions to promote had fallen, indicating that there’s much less inventory accessible to new consumers.

While demand is easing, costs are reported to be nonetheless rising. A internet stability of +36 per cent of respondents reported that residential property costs rose over the previous three months.

The easing in each demand and provide could also be weighing on surveyor’s outlook, with a internet stability of -12 per cent of respondents anticipating gross sales to fall over the subsequent quarter, and a internet stability of -38 per cent anticipate that costs can even fall over the subsequent three months.

Within the lettings market, tenant demand in Scotland continues to rise at a comparatively stable tempo, with a internet stability of +24 per cent of survey individuals noting a rise in October (a part of the seasonally adjusted quarterly lettings dataset). On the similar time, landlord directions fell. Given this mismatch, rents are anticipated to be pushed larger over the near-term, returning a internet stability studying of +19 per cent. Although this has eased from +58 per cent final time.

Alan Kennedy MRICS, Shepherd Chartered Surveyors in Fraserburgh, stated: “Sure sectors of the market are nonetheless performing nicely, significantly well-presented properties in good situation. Demand will, nonetheless, be impacted by rising mortgage charges. Unpredictable occasions forward.”

Thomas Baird MRICS of Choose Surveyors in Glasgow added: “The property market is clearly going through a interval of instability and the upcoming six months are anticipated to be sluggish with potential for 12 months of stifled situations, withdrawn mortgage merchandise and excessive rates of interest.”

Simon Rubinsohn, RICS chief economist, commented: “The newest suggestions to the RICS survey supplies additional proof of purchaser warning within the face of the sharp rise in mortgage prices. In consequence, the amount of exercise is prone to slip again over the approaching months and reasonable pricing is now far more necessary to finish a sale. The settling down in monetary markets may present some reduction though it might be untimely to imagine this can be mirrored in a discount in lending charges anytime quickly. Nonetheless, the employment image stays vital to the medium-term outlook and in the intervening time, that is still stable.

“So far as the lettings market is worried, the imbalance between demand and provide nonetheless seems unusually prolonged resulting in hire expectations within the survey remaining at elevated ranges and it’s troublesome to see this altering anytime quickly within the present surroundings.”