Surge in Scottish Home Sales: UK Real Estate Update

Scottish home sales and enquiries surged in October, with a third of surveyors reporting the fastest growth in years, signaling a vibrant market.

In a noteworthy development within the Scottish real estate landscape, a significant one-third of surveyors have reported an uptick in inquiries from prospective buyers throughout the month of October. This surge in interest, as documented in the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey, marks the most rapid increase in inquiries from potential homebuyers and newly finalized home sales in Scotland in several years.

A net balance of 33% of survey respondents in Scotland indicated that sales experienced a rise during October, a figure that represents the highest balance recorded since October 2020. Notably, Scotland's sales balance ranks as the third highest among all UK regions, trailing only Northern Ireland and the North West of England.

In tandem with this trend, demand from new buyers in Scotland has escalated at an unprecedented rate, the fastest observed in over three years. A net balance of 33% of Scottish respondents reported an increase in inquiries from new buyers throughout October, the most substantial figure since mid-2021.

Moreover, supply levels have also seen a reported increase during October. A net balance of 21% of Scottish respondents indicated a rise in new instructions to sell, a development that may contribute to a cautiously optimistic outlook among surveyors. In fact, a net balance of 31% of respondents in Scotland foresee an increase in sales over the forthcoming three-month period.

On the pricing front, a net balance of 45% of surveyors noted that property prices have risen over the past three months. Looking ahead, a net balance of 34% of surveyors in Scotland anticipate that prices will continue to rise in the next quarter.

Conversely, the rental market presents a contrasting narrative, as surveyors in Scotland report that both demand and supply remained stagnant throughout October. While Scottish respondents do expect rents to rise over the next three months, the net balance has decreased to 20%, down from the more robust net balance of 40% reported in September. This fluctuation in the rental market underscores the complexities and variances inherent in the broader housing sector.