Olympics success responsible for Scotland's 'subdued' housing market

Prediction: 'Transaction levels will pick up slightly as autumn approaches.'

Activity in the housing market dipped slightly in August as extensive coverage of the Olympics kept would-be buyers at home, according to a report.

Chartered surveyors reported falls in demand from people looking to view properties in August as well as a drop in newly-agreed sales.

However, experts said sales are going through where vendors are being "realistic" with their asking prices, with transaction levels predicted to pick up slightly in the autumn.

The figures are contained in the Royal Institute of Chartered Surveyors' (RICS) latest monthly UK housing market survey, which measures how chartered surveyors who work in residential sales feel about the state of the market.

The report revealed that the "Olympic effect" kept some potential buyers indoors, with 28% more surveyors reporting falls rather than rises in newly-agreed sales.

In addition, 21% more surveyors noted falls in demand from potential buyers wanting to look at properties.

A total of 28% more surveyors in Scotland reported falls instead of rises in prices in their area, similar to the figures recorded in July.

Craig Henderson, of Graham and Sibbald in Glasgow, told the survey: "It has been a fairly quiet summer, almost certainly caused by buyers deciding to holiday in the sun rather than buying houses due to the depressing weather.

"In addition, the saturated coverage of the Olympics has had buyers stay at home, resulting in a delay in buyers emerging from the summer slumbers.

"Traditional, good suburban locations remain in demand but we are seeing increasing stock in lower-value locations, and the imbalance of demand and supply driving prices lower still.

"Despite falling prices in these locations, first-time buyers still find entry to the market difficult or not possible due to the deposit levels still required."

Another respondent, Chris Highton, of Allied Surveyors Scotland in Selkirk, said: "The usual summer drop-off saw a couple of quiet months. The start of the autumn rush hasn't appeared yet.

"Is this a sign of continued depression in the wider economy, a lack of confidence in the market, a reflection on the bad weather or the Olympics? Perhaps it's too early to say, but things certainly appear subdued."

Surveyors across the UK reported that sales were going ahead where vendors were realistic about their asking prices, but London was the only part of the country to report a positive reading for prices in August.

Looking to the future, chartered surveyors in Scotland predict that transaction levels will pick up slightly as autumn approaches, with 10% more people expecting sales to rise rather than fall over the next three months. Prices are, however, expected to drop further in the same period.

RICS Scotland director Sarah Speirs said: "Little changed in the housing market last month. Reasonable pricing and location have played a large part in successful sales.

"Despite the Olympics taking centre stage throughout much of August, it didn't have any real impact on the proportion of sales going through.

"Understandably, the amount of people out looking at property fell away slightly but, generally speaking, demand held up fairly well."

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