Scottish house prices remain strong in April as both new buyer interest and sales activity stabilise

Scottish house prices remain strong in April as both new buyer interest and sales activity stabilise

House prices continue to increase across Scotland, as prices at a national level start to dip, according to the April 2018 RICS UK Residential Market Survey.

A net balance of 39 per cent more chartered surveyors reported a rise in prices for homes in Scotland, while the national RICS Price balance slipped to -8 per cent in the latest results, having been flat in February and March.

The national reading is, however, being heavily weighed down by the lowest feedback from London since February 2009, where 65 per cent more respondents saw prices fall over the month rather than rise.

The near-term outlook for prices in Scotland also remained positive in April, with a net balance of 20 per cent more respondents predicting property prices to continue to climb in the next few months. However, expectations remain downbeat in London, with 20 per cent more respondents predicting a further decline over the year to come.

Turning to trends in activity, new buyer enquiries were up slightly during April, following a relatively steady period during March. As with buyer demand, agreed sales in the Scottish housing market also held relatively firm over the month, having been pretty flat fallen back over the last few months.

Across the UK the picture remains varied however, with sales only rising to any meaningful extent in four of the twelve regions/countries covered by the survey. Interestingly, London was one of those four areas, where a net balance of +10 per cent of contributors cited an increase (the first positive reading in over twelve months).

Going forward, near term sales expectations point to a positive picture for transactions on a Scottish level. At the twelve-month horizon Scotland exhibits the most upbeat assessment for sales prospects across the UK over the coming year.

David Cruickshank, MRICS, D M Hall, said: “The market has recovered from the long winter period, with a marked increase in sales and new Home Report instructions.”

In the lettings market, tenant demand in the three months to April was steady, as a net balance of 6 per cent of respondents reported an increase in activity. There was a dip in landlord instructions coming onto the rental market, with this indicator remaining flat or negative since 2016. Rental growth expectations, were positive for the last quarter, with a net balance of 31 per cent more chartered surveyors predicting an increase.

RICS chief economist Simon Rubinsohn said: “The housing market typically tends to see a pick-up in activity at around this time of the year and the feedback from respondents to the latest survey does seem to be capturing this tone. However, once this seasonal pattern has been allowed for the underlying trend in transactions remains broadly flat.

“Across the UK the impact of recent tax changes appears increasingly visible in the letting results with new instructions from landlords in the three months to end April falling again and at a faster pace than previously.”

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