Demand for homes is outstripping supplying and pushing house prices up in Aberdeen, with one local estate agent describing it as a “mini boom”.
A new report by the Royal Institution of Chartered Surveyors (RICS) reveals that it’s a UK-wide issue as a lack of new properties being listed for sale continues to drive house prices up.
The RICS UK Residential Market Survey – used by the government, the Bank of England and other key institutions, including the IMF as an indicator of current and future conditions in UK residential sales and lettings – also found that although demand for energy-efficient homes is also rising, cost is the main barrier for homeowners to make energy-efficient improvements.
North-east ‘mini boom’
Chris Comfort, property partner at Aberdein Considine, said the report is a true reflection of what is happening on the ground in the north-east as demand for properties, particularly in rural areas, is outstripping supply.
“The latest figures from RICS simply backs up recent forecasts from the OBR (Office for Budget Responsibility) that the demand for residential property has been growing consistently for months and continues to grow,” said Chris.
“Activity levels in the north-east have risen consistently since the end of the first lockdown in 2020, with demand exceeding supply, not just here but across many parts of Scotland.
“The region has experienced what could be called a mini boom, with family homes in particular selling extremely quickly, and we have seen a marked shift from the city to more rural areas.”
The survey also found that despite a rise in the number of new enquiries, estate agents up and down the country only have 37 properties on their books on average with the trend for rising house prices expected to last for the next three months and year ahead.
Energy-efficient homes
And while 62% of survey respondents anticipated demand for energy-efficient properties improving over the coming three years, the current barrier for many to improve their property’s energy efficiency is cost (85%).
“Energy efficiency has increasingly been an important consideration for buyers and certainly something which has been growing in relevance across the country, but as ever there will be a range of factors which influence a decision to buy, not least price and location,” said Chris.
“Certainly some energy-efficient processes are not determined to be cost effective as are commonly explained in the Energy Performance Certificate element of the Home Report, and it would be positive to see the government address this, particularly in light of COP26 bringing the issue to the forefront in recent weeks.”
Advice
Asked for what advice he would give any would-be sellers in the north-east, Chris added: “With properties selling sometimes in days, and with the shortage of homes of the market, especially larger family houses, now would be a very good to time to explore the market if you’re thinking of selling.”
You can read the full RICS survey on their website.
