New buyer demand in Scotland on the up, according to survey

The results, however, were reported prior to the Bank of England’s decision to increase interest rates – a move which could put some off from buying.

Surveyors in Scotland reported more prospective home buyers in January, the highest level is has been since July last year (Stefan Rousseau/PA) (PA Archive)

The number of prospective home buyers in Scotland has reached its highest level since the summer, according to a report.

Surveyors in Scotland reported an increase in new buyer demand in January, with 22% saying in a survey, done by Royal Institution of Chartered Surveyors (Rics), that they had seen a boost in new buyer demand, up from 20% in December.

The respondents also said the January figure was its highest they had seen since July last year.

Alan Kennedy MRICS of Shepherd Chartered Surveyors in Fraserburgh said: “After a sluggish start to the year, the local market has now kicked into gear and activity levels are high given the time of year.”

The figures, however, were reported prior to the Bank of England’s decision in early February to increase interest rates, a move which could put some off from buying a new property.

Optimistic for the year ahead, though interest rate rises could impact buyer demand in due course

Alan Kennedy Mrics of Shepherd Chartered Surveyors

Mr Kennedy added: “Optimistic for the year ahead, though interest rate rises could impact buyer demand in due course.”

The latest Rics data found new sales expectations for the next three months from the respondents to the survey were down slightly, but still at 14%.

And when looking at the next year, 45% said sales would improve.

House prices in January saw little sign of letting up, with 68% of property professionals in Scotland seeing an increase, and 35% expecting prices to rise over the next three months, the data showed.

Greg Davidson, Mrics of Graham + Sibbald in Perth said: “There continues to be a shortage of supply which is restricting market activity.

“It is still a sellers’ market with post-lockdown demand still unsatisfied.”

Commenting on the UK-wide picture, Simon Rubinsohn, Rics chief economist, said: “The increase in new market appraisals is an encouraging signal that more supply may be funnelled onto the market over the coming months, but it remains to be seen whether any uplift in this area is sufficient to match the resilient trend in demand.

“That said, there is an inevitable question mark over the impact of rising interest rates allied to the jump in the cost of living on homebuyer sentiment.”

“Notwithstanding these developing themes, for the time being the signals on the outlook for both prices and rents remains a little worrisome with the 12-month Rics indicators for both at, or near, series highs.

“Moreover, this pattern is also being reflected in the metrics designed to capture the trends looking slightly further out.”