House prices in Scotland are expected to be broadly flat over the next three months, following a reduction in both housing demand and supply in June.
That's according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey, which found that a net balance of 30% of Scottish respondents stated that house prices rose over the past three months.
However, looking forward, a net balance of just 2% was recorded for price expectations over the next three months.
This compared to the national average of -55%. So, while surveyors in Scotland expect that prices will be broadly flat, their outlook is less pessimistic than surveyors in other regions of the UK.
In terms of demand indictors, a net balance of -18% of respondents in Scotland reported that new buyer enquiries fell. Although remaining in negative territory, this is a more modest decline than was seen in May, when a net balance of -35% of respondents saw demand falling.
A net balance of -24% of respondents reported a fall in new properties coming onto the market in Scotland in June, a similar figure that has been seen in the past few surveys.
Looking at transactions, a net balance of 8% of Scottish respondents reported a rise in newly agreed sales. But this is expected to flatten, with a net balance of 3% of surveyors expecting sales to rise over the coming months.
Ian Morton, principal at Bradburne & Co in St Andrews, commented: “The summer school holidays are upon us and the added lack of confidence in the general economy with higher interest rates has meant the property market has stagnated this summer.
“The hesitancy is from sellers coming to the market and buyers paying over the home report value.”
Greg Davidson, a chartered surveyor at Graham + Sibbald in Perth, added: “The market continues to perform reasonably well as some sectors still have an unsatisfied demand.
“Increasing interest rates and the summer holiday season may keep the market slightly subdued but the underlying market remains stable.”
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