The Scottish housing market began 2021 on a weaker footing, despite the sector being allowed to remain open during the current lockdown, with Scottish surveyors reporting activity lower than in December.
The latest figures from the Royal Institute of Chartered Surveyors (RICS) showed that 34% more Scottish respondents reported a decline in new buyer enquiries in January than reported a rise, indicating that there were fewer new buyers active in the market than at the end of last year.
This ends a run of seven consecutive months whenever new buyer enquiries were reported to have risen.
There was also a decline in the number of listings, with 71% more Scottish respondents noting a fall in new properties going onto the market than reporting a rise.
January also saw sales of homes drop, with 27% more respondents in Scotland pointing to falling numbers of sales than reporting rising numbers.
Despite the gloomy economic picture, house prices in Scotland have continued to rise, with a net balance of +52% of participants seeing an increase in January.
However, respondents expect a flat picture over the next three months.
David Cruickshank, a residential surveyor at DM Hall in Elgin, said: “Covid restrictions have severely impacted on supply, with a marked drop in the quantity of homes being placed on the market during January, when compared to January 2020.”
Alan Kennedy, a chartered surveyor at Shepherd Surveyors in Fraserburgh, added: “During the current period of lockdown, the number of new properties coming onto the market has decreased, though buyer interest remains strong and the market is relatively buoyant.
"Sellers need to be made more aware that the property market is still open and that it may be beneficial to act now.”
Commenting on the UK picture, RICS' chief economist Simon Rubinsohn said that transaction numbers will remain firm over the next couple of months, reflecting the completion of deals that in many cases were agreed through the back end of last year.
“Alongside this, renewed concerns are evident regarding the supply of properties in the rental market - changes in the regulatory framework as well as the tax regime are frequently cited as drivers of this trend which is widely seen as pushing rents higher in most parts of the country despite current affordability concerns.”
