Surveyors in Scotland reported that house prices rose through the last quarter of 2024, as a net balance of 50% of surveyors noted an increase. Looking forward, Scottish respondents anticipate that this trend through the first quarter of 2025, with a net balance of 45% expecting house prices to rise over the opening months of the year.

On the sales front, whilst surveyors in Scotland report that sales fell flat through the month of December, down from a net balance of 9% in November, they appear to be more optimistic on the outlook, with a net balance of 45% of respondents in Scotland expecting a rise in sales through Q1 2025.

Indeed, on the demand side, a net balance of 8% of Scottish respondents reported that new buyer enquiries increased through December, the third consecutive month this balance has been in positive territory.

And regarding supply, a net balance of 5% of surveyors in Scotland reported a rise in new instructions to sell, increasing from the net balance of -6% that was seen the month previous.

Looking at lettings, Scottish surveyors report that tenant demand fell flat for the third consecutive month, and that landlord instructions declined for the second consecutive month (a net balance of -20%). In saying that, a net balance of 20% of respondents in Scotland anticipate that rents will rise over the first three months.

Commenting on the sales market, Greg Davidson MRICS of Graham + Sibbald in Perth, said: “The underlying market conditions should be quite good and stable for 2025 but the sales evidence post-election is still a bit limited. It is unclear yet how the increased costs and tax and the possible impact on mortgage rates and inflation could impact. There is likely to be no significant change in the short term.”

Discussing the rental market, Ian Morton of MRICS, Bradburne & Co in St Andrews, added: “General lettings have steadied and there is choice for ten­ants. Rent increases have also slowed as supply matches demand in most sectors.”

Commenting on the UK picture, RICS chief economist, Simon Rubinsohn, commented: “The latest results from the RICS Residential Market Survey points to a further improvement in sentiment in the housing market despite concerns about the potential impact of rising bond yields on borrowing costs. Buyer enquiries rose once again, albeit at a slower pace than in November, and the headline price indicator also moved higher.

“More significantly, the signals from the survey around expectations over the next twelve months also remain solidly positive for now. However, the resilience of the uplift in market mood could be tested if the mortgage rates do begin to climb in a material way over the coming months. That, critically, would also be a concern for developers who will want to see a solid market as a backdrop for ramping up housebuilding to help meet the government’s ambitious 1.5 million homes target for this parliament.”