House prices in Scotland soar due to lack of properties

A lack of properties coming on to the market is causing house prices in Scotland to soar, according to a report.

House prices in Scotland are set to rise at a slower rate than the rest of the UK.

The latest residential market survey from the Royal Institution of Chartered Surveyors (RICS) said respondents were still positive about the outlook for the coming months despite supply holding back sales.

It revealed new buyer inquiries picked up again in November after a downturn the previous month.

The survey also showed 45 per cent more chartered surveyors saw prices rise across Scotland last month - the strongest figure since June 2014.

RICS said anecdotal evidence from respondents suggested that despite a small increase in new instructions, the long-term lack of stock is holding back transaction levels and agreed sales were flat in November across the UK as a whole.
A total of 34 per cent more chartered surveyors reported they expected to see a rise rather than a fall in activity - up from 18% in October.

RICS Scotland director Sarah Speirs said: “I can’t recall a set of comments in the residential survey which have so frequently drawn attention to lack of stock on the market.

“Given this, it is hard not to envisage prices continuing to climb upwards as we move through the early stages of 2016.

“It remains to be seen if the government will set initiatives to drive up the rate of new build and the impact that it will have on the market.

“We await the Scottish budget announcement on December 16 to see if the Government will emulate the Chancellor’s emphasis on housing.”