The latest RICS UK Residential Market Survey has been released and highlight stats for September. While Scottish figures do not feed into the main headlines, we have analysed the Scottish stats and the main results include:
• Prices in Scotland have risen in September compared to previous three month average
• Enquiries in Scotland are lower than the previous three month average
• New vendor instructions are down in September compared to the previous three month average
• Price expectations for the next three months is higher than the three month average
• Sales expectations for next three months is significantly higher than the three month average.
So what can we take from the above findings? The lack of supply in the housing market has been an ongoing factor in Scotland and this is certainly a key driver in rising house prices. With rising prices and lack of supply, this really is the time to sell in Scotland.
With funding readily available and at low costs, Scotland should be in the midst of a buoyant market. Instead there is an imbalance due to this lack of supply. The main conclusion we can draw is twofold. Firstly those wishing to move house have simply not found a suitable property they are interested in due to limited supply. Uncertainty also looms large within Scotland – Brexit and IndyRef2 are being talked about on an almost daily basis and may well have a part to play in the slow return to equilibrium in the housing market. At this point, it is political posturing rather than actions so we will simply need to see how these issues develop over coming months and how the market responds.
Looking ahead, the September stats seem to suggest there is strong confidence that sales will increase over the next three months so we await to see if this rings true.