Looking at demand, the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey reveals a net balance of 21 per cent of respondents in Scotland report that new buyer enquiries rose through January. In December this balance was reported to have been flat.

When it comes to supply, a net balance of 27 per cent of respondents in Scotland report that instructions to sell rose through January, up from the net balance of -3 per cent that was seen in the December survey.

This increase in both instructions and enquiries is expected to lead to an increase in agreed sales. A net balance of two per cent of respondents reported a rise in sales in January, up only marginally from the -2 per cent reported in the survey previous. But a net balance of 34 per cent of Scottish respondents anticipate that sales will rise over the next three months.

With regard to pricing, a net balance of 42 per cent of respondents in Scotland report that house prices rose over the past three months, which is the highest this balance has been in nearly a year.

And surveyors are optimistic that house prices will continue rising. A net balance of 23 per cent of Scottish respondents anticipate that house prices will increase over the next three months. This optimism is replicated over a 12-month horizon with a net balance of 55 per cent of respondents expecting prices to be higher in a year’s time.

RICS chief economist, Simon Rubinsohn, said: “There are early signs that market conditions may be improving after a challenging period, although activity levels are still subdued, meaning any recovery is likely to be gradual.

“While the strengthening twelve-month outlook is encouraging, near-term expectations remain relatively soft, reflecting ongoing economic uncertainty.

“Whether this tentative improvement develops into sustained momentum will depend heavily on the trajectory of mortgage rates and broader macro confidence over the coming months.”