Lack of Supply 'Ups House Prices'

A lack of houses coming on to the property market coupled with increased demand helped push prices up last month, according to a new survey. The latest Royal Institution of Chartered Surveyors (RICS) UK Residential Market Survey found house sales and buyer inquiries in Scotland grew steadily in March, while the number of properties coming on to the market continued to lag behind demand. The supply versus demand imbalance led to a net balance of 21% of surveyors reporting a rise in house prices during the month, and a net balance of 27% of surveyors expecting prices to increase over the next three months. The survey found that demand for residential property remained steady, with a net balance of 11% of surveyors reporting an increase in new buyer inquiries, and a net balance of 9% of surveyors reporting an increase in newly agreed sales during March. Sarah Speirs, director of RICS Scotland, said: "The initial boost given to the housing market by the Help to Buy scheme has begun to dissipate and activity levels have slipped back. "The new Land and Building Transaction Tax was implemented at the beginning of April, we will monitor the potential impact this has had on all market levels. "There have been indications of price increases in recent months as the supply of stock to the market continues to fall. "Anecdotal evidence does suggest that election uncertainty and the impact of the drop in oil prices may be having some impact on the market, but underlying the trends visible in the latest survey indicates a very real housing crisis which will urgently need to be addressed by the next UK government.''