Scottish Property News

Home prices rise with hopes slump is over

GLASGOW house prices have risen by nearly 4-per cent to an average of GBP140,951, according to the latest government figures.

Meanwhile figures released by the Royal Institution of Chartered Surveyors (RICS) suggest more properties were put on the market last month, buoyed by the belief that the housing slump is now over.

The RICS August survey of its members showed the net balance of surveyors - the number of those reporting a rise in new instructions minus those reporting a fall - indicated 18-per cent more chartered surveyors had seen more new properties placed on the market than those who had not.

The number of surveyors reporting a rise in new instructions increased by 6-per cent from July, and 33-per cent from June.

Around 74-per cent more of those surveyed said they had seen a rise in buyer inquiries throughout August than those who had not - more than the UK average which was 49-per cent.

The poll of 16 Scottish chartered surveyor firms also suggested that the slump in house prices had bottomed out and property values were once more on the rise.

Around 33-per cent of chartered surveyors said they had seen a rise in house prices in Scotland in the past three months.

But more than half - 56-per cent - said prices have stayed the same - and around 11-per cent claim that prices have fallen further since June.

Figures released by the Registers of Scotland in May this year showed house prices in Scotland had fallen dramatically during the past year.

Between January and March this year, the average house price was GBP140,318 - down 8.7-per cent on the previous quarter's average.

But Sarah Speirs from RICS Scotland insisted it was "clear" that house prices are now rising. She said: "The more positive news flow of rising prices will gradually encourage even more vendors to start putting property back on the market.

"This development should enable more potential purchasers to find desirable properties to buy.

However it could also present a challenge to the trend in rising prices particularly when interest rates finally begin to move upwards."