RICS survey

Scottish housing market shows weaker demand

housing for sale
Prices and new instructions are expected to fall (pic: Terry Murden)

Activity in the Scottish housing market continues to weaken, with higher interest rates and a difficult macroeconomic outlook both taking their toll on buyer sentiment, according to the November RICS UK Residential Survey.

While house prices are continuing rise, they are doing so at a slower pace and for the seventh month in a row, buyer demand in Scotland continued to fall and the market remains in a firmly downward trend. There are also fewer new instructions.

House price growth was the second weakest since June 2020 and Scottish respondents on balance now expect prices to decline.

Across the whole of the UK, the market is continuing to ease with buyer demand, agreed sales and new instructions in negative territory.

Simon Rubinsohn, chief economist, commented: “The overall tone of the latest RICS Residential Survey is understandably more downbeat than previously, reflecting the uncertain macro environment and the higher cost of mortgage finance.:

However, he noted that the likely ‘job-rich’ recession suggests the downturn in the housing market this time could be shallower compared with past experiences.

“The imbalance in the rental market remains significant as landlord instructions continue to fall and is consistent with further increases in rents, even if the momentum does appear to be slowing just a little.”

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