Lack of supply seeing fall in Scottish house sales, survey suggests

A lack of houses waiting to be sold in Scotland alongside a surge in people wanting to buy has seen prices climb, a market survey has suggested.

A net balance of 29% of respondents to the latest RICS Residential Market Survey said in Scotland there was a increase in new buyer inquiries but at the same time there was a net balance of -9% reporting a decrease in instructions to sell.

This is leading to a fall in houses sold, with a net balance of -5% reporting a fall in sales agreed for the month of March.

A positive net balance implies that more respondents are seeing increases than decreases, RICS said, while a negative one implies the opposite. Zero suggests an equal number of respondents seeing increases and decreases.

David Cruickshank, from D M Hall, said: “The residential market is still characterised by an unusually short supply of property at every level and abnormally high demand.

“This has resulted in closing dates, high offers to exclude competition and rising property prices.”

In the first quarter of this year there has been a similar pattern to March, with reports of new buyer inquiries on the rise but new instructions to sell falling, leading to a drop in sales.

The RICS survey said the supply and demand dynamic is leading to a rise in prices north of the border, with a net balance of 72% of respondents reporting an increase, which is expected to extend into the April to June quarter.

Grant Robertson, of Allied Surveyors Scotland, said: “The continuing squeeze on sales stock together with the restricted release of new homes to the market has resulted in the bull market continuing.

“Multiple offers at closing and offers often sitting 20% or more over the home report value. With the squeeze on household incomes, something has to give.”