House prices remain firm despite stalling sales, study finds

The number of new listings of homes for sale in Scotland continued to decline last month, according to research.

The April 2019 Royal Institution of Chartered Surveyors (Rics) Residential Survey found Brexit uncertainty also remains a constraint on the property market, meaning “little change in momentum is anticipated near-term” – although expectations are more positive in the future.

However Scottish house prices remained firm in April, with a net balance of 28% of respondents reporting an increase. The net balance is the proportion of respondents reporting a rise minus those reporting a fall.

Simon Rubinsohn, Rics chief economist, said: “Across the UK, although there are signs of greater realism on pricing from vendors, there is little conviction in the feedback from respondents to the survey that activity in the housing market will pick up anytime soon.

“Significantly, the key Rics buyer inquiries indicator remains subdued and sales expectations looking a year out are only modestly positive.”

The survey found new buyer interest across Scotland has deteriorated, with a net balance of -26% of respondents reporting a decline in demand.

Meanwhile a net balance of -19% of chartered surveyors reported a drop in transactions during April.

Looking ahead, the survey found near-term sales expectations for Scotland remain negative, and expectations still point to a flat or declining sales trend across all parts of the UK in the coming three months.

In the Scottish lettings market, tenant demand continues to climb while landlord instructions continue to dwindle, extending a run of successive quarterly declines dating back to the beginning of 2016.

The Rics Residential Market Survey is a monthly sentiment survey of chartered surveyors who operate in the residential sales and lettings markets.