Expectations for home sales in Scotland have reached their highest point in over three years, according to the latest report from the Royal Institution of Chartered Surveyors (RICS) Residential Market Survey. As 2024 draws to a close, the Scottish housing market is showing signs of resilience, with buyer inquiries and sales continuing to rise, albeit at a slower pace compared to the previous month.
Rising Expectations for Sales
A net balance of 50% of respondents in the RICS survey are anticipating an increase in home sales over the next three months, signaling strong confidence in the market’s short-term outlook. This marks the highest level of optimism in the housing market since 2021. Despite some slowing in the rate of growth, the outlook remains positive for the Scottish housing sector.
Slower Increase in Buyer Demand
While the overall sales expectations are high, there has been a noticeable slowdown in new buyer inquiries. A net balance of just 5% of Scottish surveyors reported an increase in buyer inquiries in November, a sharp drop from the 31% recorded in October. This shift indicates that while demand is still present, it is not increasing as rapidly as before.
Home Prices Continue to Rise
In terms of pricing, the Scottish housing market continues to see upward movement. A net balance of 31% of respondents reported price increases in November, and a larger portion—44%—expects this trend to persist in the first quarter of 2025. This indicates that, despite slowing buyer demand, the market remains robust, with a continued upward trajectory in property values.
Supply Constraints Impacting Sales
However, one key challenge for the Scottish housing market is a shortage of available homes. The survey’s indicator for instructions to sell shifted into negative territory in November, dropping to -6% from 20% in October. This suggests that fewer homeowners are putting their properties on the market, potentially limiting the number of transactions in the coming months.
Rental Market Trends
Turning to the rental sector, tenant demand in Scotland has remained flat for the second consecutive month. A net balance of -22% of surveyors reported a decrease in landlord instructions, indicating a shrinking supply of rental properties. Despite this, rental expectations remain positive, with a net balance of 20% of surveyors predicting rent increases in the next three months.
