Warning Amid 'Unsustainable' House Prices

The Royal Institution of Chartered Surveyors (RICS) has warned that increasing house prices could become "unsustainable" in some areas unless more homes are made available.

In its latest market survey, it added that the number of homes coming onto the market is not enough to meet demand.

Last month, some 44% of surveyors reported an increase in new instructions, while demand also grew, with 55% more surveyors reporting a rise in enquiries. The combination meant property prices continued to rise in Scotland.


Elsewhere, the survey found that growth in demand for rented accommodation has slowed "significantly", as those renting choose to enter the property market.

Scotland director Sarah Spiers explained: "Although the number of houses on the market falls short of demand, the increase reported is certainly as step in the right direction.

"Growing availability of affordable mortgages has released some pent-up demand from a market that, in recent years, has seen many viable buyers unable to enter the market.

"On the face of it, this seems like good news but unless we see a marked increase in the number of homes coming up for sale we could well be looking at price rises becoming unsustainable in some areas."

(JP/MH)