Scots house prices on rise despite fall in demand, says report

House prices across Scotland continue to rise despite a decrease in demand, according to a report.

House prices across Scotland are continuing to rise despite a decrease in demand. Picture: John Devlin

The Royal Institution of Chartered Surveyors (Rics) said September saw Scottish house price growth remain in positive territory, with 33% more respondents reporting a rise rather than a fall.

Expectations also appear to be optimistic for the future, with 14% more chartered surveyors predicting a growth in prices in the next three months.

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However, new buyer inquiries declined significantly across Scotland during September, with 16% more chartered surveyors reporting a fall in interest due to a lack of choice for would-be purchasers.

The picture remains mixed elsewhere in the UK, with a greater level of caution in central London where prices are expected to continue to edge lower.

The overall drop in the UK housing market is thought to be fuelled by uncertainty over the result of the EU referendum and the higher stamp duty in place on investment property purchases.

Thomas Baird, of Select Surveyors Glasgow, said: “There was a slowdown in home report instructions for September, which is indicative of the lack of housing stock coming on to the market.”

Simon Rubinsohn, Rics chief economist, added: “The UK market does now appear to be settling down following the significant headwinds encountered through the spring and summer.

“Buyers do appear to be returning, albeit relatively slowly, but the big issue that continues to be highlighted by respondents is the lack of fresh stock on the market, which has been evident in Scotland over the last year.

“Although this is not a new story, it is a significant one having ramifications for both prices and the level of turnover.”