2013 is drawing to a close and it seems certain that house prices in Scotland are rising again as interest from buyers has outstripped the number of properties coming onto the market.
A recent survey by RICS Scotland reported that 52% more chartered surveyors across Scotland are predicting prices to continue their upward trend over the coming months with 78% expecting sales levels to increase assisted in part by the Scottish Government’s Help to Buy Scheme.
Separate figures from the Council of Mortgage Lenders also show that the housing and mortgage markets look set to continue to show greater levels of activity in 2014. The body forecast a rise in lending from an estimated £170 billion in 2013 to £195 billion in 2014, increasing to £206 billion in 2015.
There is however some disquiet about the rapid growth in property prices. As Sarah Speirs, director of RICS Scotland, said “The housing market is gathering momentum and buyer numbers are on the rise across Scotland. That said, the number of houses currently up for sale is still nowhere near enough to keep up with demand and, in order for the market to function correctly, this imbalance urgently needs to be addressed.”
She continued to say “with more people returning to the housing market and supply currently limited it is important that the prices do not rise to such an extent that they become unaffordable.” “For the market to work properly it’s vital that property is both accessible and affordable, and we’ll be monitoring the situation very carefully as the housing sector continues to recover.”
Hopefully 2014 will experience continued healthy growth in the housing market.