Despite a noticeable dip in homebuyer interest, surveyors in Scotland remain optimistic about the property market’s trajectory, forecasting an increase in both sales and prices in the coming months. According to the latest Residential Market Survey from the Royal Institution of Chartered Surveyors (RICS), February marked a significant downturn in new buyer enquiries, although many professionals in the sector still foresee a positive shift ahead.
Declining Buyer Interest
The RICS survey revealed that in February, a net balance of minus 8% of respondents reported a decrease in new buyer enquiries. This marks the lowest level of interest since the middle of 2024, illustrating a concerning trend for the market. This decline is stark compared to the previous month, which had recorded a net balance of 18%.
In terms of supply, the situation is somewhat mixed. While 8% of respondents noted an increase in instructions to sell, this is a decrease from the 27% recorded in January. This suggests that while some sellers are entering the market, the overall supply is not keeping pace with demand.
Positive Sales Momentum
Interestingly, the survey indicated a positive shift in newly agreed sales. A net balance of 7% of surveyors reported an increase in these sales, marking the second consecutive month of positive feedback. Furthermore, 39% of respondents expect sales to rise over the next three months, signalling a cautious optimism amid the broader downturn in buyer enquiries.
House prices have shown resilience as well. Approximately 28% of surveyors stated that prices had increased over the past three months, although this growth has slowed compared to January. Looking forward, 24% of respondents expect prices to continue climbing in the near term.
Expert Insights
Marion Currie, a RICS-registered valuer at Galbraith in Dumfries and Galloway, noted an uptick in activity as February progressed. “Agreed sales are starting to gain momentum, and a good supply of fresh stock is in the pipeline,” she stated, highlighting a potentially encouraging outlook as the financial year comes to a close.
On a broader scale, Tarrant Parsons, head of market research and analytics at RICS, pointed to renewed volatility in the property market. He remarked on how the geopolitical landscape has impacted confidence among buyers and sellers alike, with rising oil and energy prices contributing to expectations that mortgage rates may remain elevated longer than anticipated. “While the 12-month outlook remains positive overall, maintaining that trajectory will depend on easing inflationary pressures in the months ahead,” Parsons added.
Why it Matters
The current state of the housing market in Scotland reflects a complex interplay of declining buyer interest and resilient pricing expectations. While the immediate outlook may seem uncertain, the anticipation of rising sales and prices suggests that the market could rebound as confidence returns. This dynamic is crucial for prospective buyers and sellers to understand, as it may influence their decisions in an ever-evolving economic landscape. As we approach a new financial year, the resilience shown by surveyors highlights the potential for recovery, even amidst challenges.
