Scotland's housing market slump 'worst in UK'

Scotland had the weakest figures for new buyer inquiries of any nation or region in the UK

The market for homes has slowed further with lockdown, and more in Scotland than other parts of the UK.

The Royal Institute of Chartered Surveyors (RICS) is reporting that interest from potential buyers was down in February.

The number of properties being put on the market was also down, for the fourth consecutive month.

More surveyors reported prices rising than falling.

RICS expects the easing of Covid restrictions in coming months to bring more activity back.

Unlike last spring, the housing market has remained open in Scotland during lockdown in 2021, but with distancing restrictions.

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Scotland had the weakest figures for new buyer inquiries of any nation or region in the UK.

The only region that was weaker for selling instructions was Yorkshire, and the only part of the UK with weaker price growth was London.

'Starved of quality property'

In the monthly RICS report, comments from agents noted some pockets of activity.

In rural Scotland - from Elgin, Fraserburgh, the Borders and Dumfries and Galloway - agents noted strong demand for properties. With slow supply, they said home sales can be quick.

Phiddy Robertson of the Galbraith Group in Inverness, said: "The market is starved of good quality property.

"Buyers are paying significant premiums to secure attractive coastal property and we are seeing more interest than ever from southern buyers looking for second homes."

One Edinburgh agent said fewer people are making inquiries about properties

In Edinburgh and Glasgow, surveyors found the market more patchy, noting that more flats are coming on the market as private landlords sell.

In the housing rental market, Scotland had the biggest drop in property availability of any part of the UK.

John Brown, a rental agent in Edinburgh, commented: "The market is fragmented, with fewer enquiries and longer void periods between tenancies.

"It's clear landlords are looking to reduce portfolios. More legislation, and Energy Performance Certificate standards being enforced, add to costs.

"Students are registering for next year but trying to be uncommitted - that's the Covid effect".

In Dumfries at the Savills agency, Carolyn Davies said renters are looking for demand for rural properties "but broadband speeds now need to be established prior to letting".