A LACK of homes for sale is expected to fuel a rise in prices over the coming months, surveyors predict.
The upbeat forecast follows a modest increase in properties coming onto the market meaning that demand is out-stripping supply.
Last month saw a rise in home sales, with a slight improvement in housing stock available still falling short of meeting the number of would-be homeowners looking to buy.
The latest survey by the Royal Institution of Chartered Surveyors (RICS) found that the number of their Scottish members reporting fresh sales rose by a third in September, boosting house prices.
But 31 per cent of those questioned felt the biggest factor constraining on the market is lack of stock already for sale.
Sarah Speirs, Director RICS in Scotland, summed up the buoyant mood, saying: “Activity is now picking up which is encouraging and we are seeing slight improvements in stock coming on to the market, although this is still falling short of demand. Against this backdrop, we expect prices to move higher over the coming months.”
A total of 16 per cent of Scottish surveyors said that they had observed an increase in properties being put up for sale.
RICS said prices will continue to grow until the end of the year, with modest rises also expected in the first half of 2016.
The residential survey found that the UK market saw sales growth hit a 16 month high, marking the fifth consecutive month in which transactions have increased, with the North, East Anglia, and Scotland posted the sharpest rises in activity during September.
The pattern being seen by chartered surveyors echoes recent lending data showing mortgage approvals at an eighteen month high, up by12 per cent compared to a year ago.
In the Scottish lettings market, tenant demand increased, leading to RICS forecasting continued rises in rents throughout 2016.
Gillian Munro, of property firm Graham + Sibbald, said: “September has been a stable month for new instructions coming on to the market. This is expected to continue into the autumn months.”
Meanwhile, demand for £1 million plus homes in the capital is on the rise again, according to one property consultant.
Edinburgh had suffered from a sharp drop in activity in the market's top end after Scotland's replacement for stamp duty, the Land and Buildings Transaction Tax (LBTT) began in April.
Between April and September, there were three £1m plus sales successfully completed in the city.
Jamie McNeill, Head of Residential at CKD Galbraith’s Edinburgh office, said: “Our recent research shows that buyer and seller confidence is returning following the introduction of LBTT in April and the UK General Election in May, with an increase in the number of properties coming to the market in Edinburgh."
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