House prices rise for sixth consecutive month in a row

House prices in Scotland have risen for the sixth month in a row, according to the latest statistics.

The February 2020 RICS Residential Market Survey suggests a net balance of 35% of Scottish respondents saw an increase, higher than the UK average of 29%.

However, new buyer inquiries and instructions to sell were flat, with net balances of 0% in Scotland and a UK average of minus 3% reported respectively.

While more than a quarter of Scottish respondents (26%) expect house prices to continue rising in the next three months, experts are still advising caution amid the uncertainty, this time from coronavirus as well as Brexit.

David Cruickshank, of DM Hall LLP in Elgin, said: “The market still reflects uncertainty. Brexit is ongoing with the full effect still more than a year away.

“The Covid-19 virus is also likely to negatively affect the economy and market if it spreads in an uncontrolled manner.”

Simon Rubinsohn, RICS chief economist, said: “It is encouraging that the results of the latest UK survey continue to show a positive trend both in terms of potential buyer interest and new instructions to agents.

“Indeed, this is the first time since 2014 that new supply to the UK market on the RICS indicator has increased for three consecutive months.

“Inventory levels are still at historically low levels despite this, but the firmer trend in appraisals suggests that the picture could improve over the coming months providing the coronavirus doesn’t become more of an inhibitor of activity in the sector.

“For now, at least, feedback around expectations are consistent with activity levels continuing to strengthen, albeit relatively modestly.”