Scottish house prices continued to rise in July, even though there were fewer homes changing hands. This has been the trend for eight months in a row, showing a strong housing market north of the border.
Experts from the Royal Institution of Chartered Surveyors (RICS) say that 30% more surveyors saw house prices increase than decrease in the last three months. Looking ahead, they predict this trend will continue, with 14% more expecting price rises over the next three months too.
While prices are up, the number of homes actually being sold dipped slightly. This slowdown in sales is less dramatic than in previous months, suggesting the market might be stabilising.
There are some positive signs for those wanting to buy. More homeowners are putting their properties up for sale, with a 19% increase in new instructions to sell reported in July. This follows a significant drop in June, suggesting more sellers are now ready to test the market.
Buyer enquiries also saw a slight increase, with 4% more surveyors reporting a rise in interest. This follows a period of decline and indicates potential buyers are returning.
So, why are prices still rising if sales are down? The answer lies in the continuing mismatch between supply and demand. Basically, there are still more people looking to buy than there are homes available.
Renters are feeling the squeeze too. Demand for rentals is outstripping supply, leading to a competitive market and pushing prices up. A whopping 50% of surveyors expect rents to rise further in the coming months.
What does the future hold? RICS experts believe that recent government efforts to boost housebuilding, along with the Bank of England’s interest rate cut, could help the market. However, challenges remain, particularly regarding planning reforms needed to build new homes.
Here’s a summary of the key figures:
- House prices: Increased for 8 months straight.
- Sales: Slowed down, but less dramatically than before.
- New sellers: Increased by 19% in July.
- Buyer enquiries: Increased slightly.
- Rental demand: Continuing to outpace supply, leading to higher rents.