A new survey has revealed that while house-building activity is increasing throughout Scotland, there is still a lack of available homes.

The findings were published by the Royal Institution of Chartered Surveyors (RICS) in its Residential Market Survey for March.

It found that demand for homes remained steady last month, with 15% more surveyors reporting an increase in new buyer inquiries. However, new instructions from sellers continued to decline, and as a result, further pressure was put on property prices.


In fact, some 32% more surveyors recorded price rises instead of falls in Scotland.

Despite the increase, 46% believed there would be a rise in sales during the next quarter.

Sarah Speirs, RICS Scotland Director, is quoted as saying: "Now that the housing market recovery is under way and mortgage finance is readily available, buyers seem to be looking to test the market across Scotland.

"That said, it is a major concern that we are not seeing enough houses coming onto the market to meet this demand.

"For the market to operate effectively, we desperately need more homes in areas where people want to buy and want to live.

"Until this happens we're likely to see prices to continue to increase and it is going to be ever harder for many first-time buyers to enter the market."

(JP/MH)