THE Scottish housing market is showing signs of recovery with growing numbers of surveyors reporting a rise in sales.
A new report by the Royal Institute of Chartered Surveyors (RICS) says a sustained demand for new properties fuelled the market and pushed up the value of people's homes last month.
The majority of surveyors believe prices will rise again during the next three months.
The RICS Scottish Residential Market Survey said more homes were going on the market and more new buyers were also looking to buy their first property.
Last month, a net balance of 59% more chartered surveyors reported a rise in new buyer enquiries, while almost three-quarters recorded a rise in newly agreed sales.
Although the chief interest has been in buying properties, demand for rented accommodation also rose in June.
Sarah Speirs, director of RICS Scotland, said: "We are finally starting to see what looks like the beginning of a recovery in the housing market, with a rise in newly agreed sales.
"It is important to remember activity levels still remain depressed by historic standards but the various initiatives designed to encourage the provision of finance into the market do appear to be paying dividends.
"Despite the continued interest in buying a property, figures continue to show that demand from would-be tenants remains firm and rents are likely to continue to edge upwards over the next twelve months."
Peter McEachran, at Graham & Sibbald, Renfrewshire, added: "There are distinct signs of an improvement in market conditions.
"Houses are now selling within three months of going on the market, some with closing dates.
"The general mood is more optimistic than before and this bodes well for the rest of the year."
Estate agents say they agree with the picture painted by the RICS report, with demand for properties increasing in both Glasgow and Edinburgh.
Sharon Donaldson, sales director at Slater, Hogg and Howison, said: "Previously we have seen homes go for 90-95% of their home report value but in the last six to ten weeks we are seeing properties begin to outperform that.
"There is the caveat that this is happening in the most desirable locations, such as the west end of Glasgow and south of the city in Newton Mearns and Clarkston, where supply is outstripping demand.
"We are seeing a return to closing dates where more than one party are bidding for a property, and overall I'd agree with the figures in the RICS report that we are seeing a recovery."
Kirsten Stuart, associate in Strutt & Parker's Edinburgh office, said: "There are significant signs of recovery in the housing market with more activity, higher transaction levels and increased prices.
"Closing dates are returning, bringing with them increasing competition, and several properties in the past two months have sold for premiums above the Home Report valuation. Additionally, a continued lack of supply is driving up demand and keeping the market hungry.
"The spring market was slow to come to fruition this year which had a knock-on effect on June and early July. We are far busier now than we would normally be at this stage of the summer."
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