House prices have continued to rise across Scotland, but at a slower pace than previous months.
The findings of a market survey indicate a downward trend in the rise of house prices as buyer demand continues to fall which has been closely monitored over the past seven months.
The slowdown has been attributed to higher interest rates and a difficult macroeconomic outlook taking a toll on prospective buyers.
Experts have described the findings, from the November 2022 RICS UK Residential Survey, as “more downbeat” than previous months.
Thomas Baird MRICS from Select Surveyors Ltd in Glasgow says: “There has been a definite slowdown in the residential market due to lower levels of mortgage products and high interest rates.”
Marion Currie AssocRICS of Galbraith in Dumfries & Galloway also commented on the latest outlook and suggested economic factors may not be as significant.
He said: “November continued in much the same way as October in terms of buyer activity and interest, with perhaps only a small seasonal slowdown rather than any particular economic factors at play. Stock is diminishing however, with fewer new instructions compared to sales.”
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, anecdotal comments from respondents capture the very real significant divergences in market behaviour at a more localised level.
“Although the headline price balance recorded two consecutive modest monthly falls in prices, and the forward-looking series indicate that this trend will extend through the coming months, the likely ‘job-rich’ recession suggests the downturn in the housing market this time could be shallower compared with past experiences.”
He added: “Meanwhile, 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.”