BREXIT uncertainty is taking its toll on Scotland’s subdued housing market, a new survey has shown.
The UK Residential Market Survey March 2019, from the Royal Institute of Chartered Surveyors (RICS), warns that the slump in the UK housing market looks set to continue amid ongoing Brexit uncertainty.
The RICS said the market was still subdued in March, adding that it was “a picture that has been evident in the sales market for several months now, with the lack of momentum likely to continue for the short term”.
Scottish sales remain flat and sales expectations for Scotland are also negative, with more chartered surveyors expecting a decline in sales over the next three months, though sales are anticipated to rise over the coming 12 months as a whole.
That being said, Scotland and Northern Ireland are the only parts of the UK to have seen sustained price growth on a consistent basis over the past two months.
The ongoing decline in new property coming on to the Scottish market continues. Demand from potential buyers has consistently outpaced new instructions across Scotland for several years now. Consequently prices remained firm in March, with 20% of respondents reporting a rise in house prices across Scotland.
Craig Henderson, of Graham & Sibbald in Ayrshire , told the survey: “Brexit, Brexit and Brexit, the biggest factor in the property market right now and the continued uncertainty. Stock levels are low as vendors are worried about what impact Brexit will have. This means demand is outstripping supply.”
Thomas Baird, of Select Surveyors in Glasgow, added: “Brexit extensions not brilliant for the overall market and the lack of confidence.”
Simon Rubinsohn, RICS chief economist, said: “Brexit remains a major drag on activity in the market with anecdotal evidence pointing to potential buyers being reluctant to commit in the face of the heightened sense of uncertainty.
“Whether any deal provides the shift in mood music envisaged by many respondents to the survey remains to be seen but as things stand, there is little encouragement to be drawn from key RICS lead indicators. We expect transactions to decline on this basis.
“Arguably more significant still are the signs that developers are continuing to adopt a more cautious stance.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here