Housing market being hit by lack of available stock - report claims

A lack of available housing stock is still depressing the market in Scotland, according to a report.

The latest publication from the Royal Institution of Chartered Surveyors (RICS) found the market continued to be hampered in April despite a rise in sales prices.

Their UK residential market survey found there was a drop in new instructions to sell last month while inquiries from would-be new buyers have failed to see any meaningful growth since November 2016.

In fact, a net balance of 4% of surveyors questioned said they saw a fall in new buyer inquiries during April.

Looking at the wider picture in Scotland, RICS said anecdotal evidence cites a lack of choice, uncertainty due to the calling of an early General Election and the continued lack of clarity over the terms of Brexit as factors stymying'' the market.

The report also suggested house price inflation across the UK is expected to slow in the next three months but the forecast is for all parts of the country to see growth in house prices over the coming year.

In the lettings market, the quarterly data shows tenant demand rising moderately'', although momentum does appear to have faded over the past six months, RICS said.

Gail Hunter, RICS regional director for Scotland, said: It's disappointing to see that a lack of available housing stock continues to depress the market, not just in Scotland but across the UK.

While the Scottish Government's 50,000 affordable homes target is to be welcomed, what is needed is a holistic approach to the challenges faced by both the sales and letting market, and an LBTT regime that does not create a bottleneck in completed sales such as that being reported at the moment.

Feedback from surveyors suggests ongoing uncertainty surrounding the forthcoming General Election and the terms of Brexit.

RICS has been clear that both the UK and Scottish governments must bring forward clear, evidence-based positions on how Scotland's relationship with the rest of the UK and the European Union will develop.

This would go some way to offsetting the uncertainty being reported.''