RICS: House prices in Scotland rise slowly

House prices in Scotland rose over the past three months at the slowest rate seen since early 2024, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey, and respondents expect this weaker price growth trend to continue in the short-term amid an increase in supply to the market.
According to the latest survey results, a net balance of 20 per cent of respondents in Scotland reported that house prices increased over the past three months. This is lower than the 32 per cent seen in March, and 44 per cent in February.
And it is a similar situation with price expectations, with surveyors appearing cautious. The balance of Scottish surveyors expecting prices to rise over the next three months is 5 per cent in the latest report, compared to 7 per cent last month and 15 per cent in February.
Looking at supply, a net balance of 19 per cent of respondents in Scotland reported a rise in new instructions to sell, which is the highest this balance has been since October 2024. And in line with this, a net balance of 25 per cent of respondents anticipate that the number of sales will increase over the next three months, compared to 20 per cent in last month’s report.
On the demand front, a net balance of nine per cent of surveyors in Scotland noted a rise in new buyer enquiries through April, up from the -6 per cent seen in the March survey.
In the rental market, a net balance of -33 per cent of surveyors noted a fall in tenant demand in Scotland, and landlord instructions were reported to have fallen too (a net balance of -20 per cent). As a result of reducing tenant demand, surveyors in Scotland anticipate that rents will fall broadly flat over the next three months.
Commenting on the sales market, Alan Kennedy, MRICS of Shepherd Chartered Surveyors in Fraserburgh said: “The market in this locality is patchy at present. Bungalows are selling quickly, realistically priced flats are selling slowly, and properties requiring upgrading are sluggish. The rural market though is particularly active at present.”
RICS chief economist Simon Rubinsohn said: “Although geopolitical developments haven’t helped the mood music in the residential market over the past month, the main reason for the dip in the key RICS sales activity metrics lies in the expiry of the stamp duty holiday at the end of March.
“Near term expectations indicators suggest the subdued trend will persist for the next few months at least but looking beyond this, the results are more encouraging reflecting in part the prospect of deeper interest rate cuts than previously anticipated.
“More problematic, however, is the negative feedback in the survey around supply in the rental market. With demand continuing to grow, there appears little relief in store for tenants in terms of the upward pressure on rents. Critically, even with the rise in the build to rent to sector the shortall of affordable rental stock looks set to remain substantial.”