House prices in Scotland remain stable, while falling in the rest of the UK, Clear Property Investment learned earlier this week.

The latest UK Housing Market survey from the Royal Institute of Chartered Surveyors (Scotland) shows the net price balance of property was up one per cent in August to two per cent.

And the figure is expected to increase over the next quarter - in contrast to the rest of the UK where 38 per cent of surveyors expect prices to drop still further.

Demand is believed to be due to a decline in the supply of properties coming onto the market.

Sarah Speirs, deputy director, RICS Scotland said: "What we are reporting is a leveling out of the Scottish market which puts us at odds with the rest of the UK. Demand is starting to weaken, but prices are being supported by continued falls in supply.

"Surveyors in Scotland are confident that prices will rise moderately over the next three months. However, the situation as ever is fluid and highly dependant on the scale of public sector spending cuts and the performance of the wider economy".

Although sales activity grew during August, it was not as rapid as in previous months.

Meanwhile, the picture for the rest of the UK was rather more bleak with sales activity falling from +1 per cent to -20 - the lowest reading in two years. Having said that, the forecast for further sales is good with many surveyors believing a dip in prices - for the second month in a row - will tempt more buyers back onto the market.

The fall in prices in all sectors - apart from Scotland - has been attributed to more properties coming on to the market.

RICS spokesman Jeremy Leaf also blames future economic uncertainty.

He said: ‘The latest set of results suggest prices in many parts of the country may be slipping but this does appear to be encouraging hopes amongst surveyors that sales levels could begin to pick up as a result.

‘That said, there can be little doubt that the restrictive attitude to the provision of mortgage finance will continue to limit transaction activity in the market. Looking forward, our price indicators are telling a mixed story which is consistent with the uncertainty hanging over the economy, the low level of interest rates and the lack of new house building.'

For further information on house prices and investments please contact any our Clear Property Investment team.

 

 

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