The latest report from the Royal Institution of Chartered Surveyors (RICS) indicates a notable rise in Scotland’s residential property market, with both sales and buyer inquiries experiencing the strongest growth in several years. The October survey highlights that a net balance of 33% of Scottish survey respondents observed an increase in sales, a peak since October 2020, making Scotland’s sales growth the third highest among UK regions, trailing only Northern Ireland and the north west of England.
Key highlights of the Scottish property market in October include:
- Buyer Demand Surge: New buyer enquiries rose at the fastest rate in over three years, with a net balance of 33% of survey respondents reporting increased interest from prospective buyers—the highest since mid-2021.
- Supply Increase: Supply constraints have somewhat eased, as 21% of respondents reported more homes coming to market.
- Optimistic Outlook: There’s confidence among surveyors regarding future sales, with 31% expecting sales to rise over the next three months.
- Rising Prices: Reflecting demand pressures, 45% of surveyors observed price increases over the past three months, and 34% expect further price rises in the near term.
Rental Market Insights: Unlike the sales market, the rental sector showed less dynamism, with both demand and supply remaining flat through October. However, rental prices are anticipated to rise slightly, although the expected increase has moderated from previous months.
Commentary from Surveyors:
- Thomas Baird (Select Surveyors, Glasgow) remarked that lower mortgage rates and increased activity have supported the market, though limited supply in some areas is driving up prices.
- Grant Robertson (Allied Surveyors, Glasgow) noted a slight cooling in the rental market, especially at the upper end, suggesting an adjustment from previously overheated levels but expects limited stock to apply upward pressure on rents.
At the UK level, RICS Head of Market Analysis Tarrant Parsons acknowledged the overall pickup in activity and buyer demand across the nation. However, he also noted potential challenges ahead due to rising bond yields and higher financial market interest rate expectations, which could impact affordability and market activity in the coming month