UK Real Estate Market: Scotland Home Prices Hit New Highs

Home prices in Scotland rise at the fastest rate in two years, with surveyors anticipating ongoing increases in sales and prices over the next quarter.

Scottish surveyors are brimming with optimism, expecting both sales and prices to continue their upward trajectory over the next three months. According to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey, residential real estate prices in Scotland have surged at the fastest rate since mid-2022. A net balance of 39% of surveyors reported an increase in house prices throughout August, marking the ninth consecutive month of positive figures and the highest balance since July 2022.

Looking ahead, 13% of respondents in Scotland anticipate further price increases in the coming quarter. However, it’s worth noting that new buyer inquiries took a dip in August, with a net balance of -13% of surveyors indicating a decline. Despite this, a net balance of +22% of respondents expect sales to rebound in the next three months.

On the supply side, challenges persist. The latest survey revealed a stagnation in new instructions to sell, which fell from 14% in July. Meanwhile, the lettings market saw a continued rise in demand throughout August, albeit at a more tempered pace than in previous months. A net balance of 17% of surveyors reported an uptick in demand for rental real estate, down from 33% in the two months prior.

Interestingly, the supply in the lettings market has also seen an increase, with a net balance of 17% of Scottish respondents noting a rise—the highest this balance has been since early 2022. Consequently, the anticipated rate of rent increases has moderated, with a net balance of 33% of Scottish respondents expecting rents to rise over the next three months, a decrease from 50% in the previous two months.

While the Scotland real estate market exhibits signs of resilience and growth, it remains a landscape of fluctuating dynamics, where optimism coexists with caution.