This follows a period of six consecutive months where this balance has been edging further upwards.

A net balance of 42% of surveyors in Scotland report that new instructions to sell rose through July, this is up from the 22% reported in June and the highest this balance has been since August 2020. Whilst the highest balance seen across Scotland in recent years, this is in line with similar trends seen across other parts of the UK such as Northern Ireland, the East Midlands and the North West.

Demand also remained on the up during July. A net balance of 31% of Scottish respondents reported a rise in new buyer enquiries. Whilst remaining firmly in positive territory, this is down slightly from the net balance of 35% that was reported in June.

And with demand and supply appearing robust, sales also continued to rise, although at a slower rate than seen in June. A net balance of 20% of surveyors in Scotland reported a rise in newly agreed sales in the most recent survey, down from the 39% the previous month. And looking forward Scottish surveyors appear optimistic on the sales outlook with a net balance of 27% of respondents anticipating home sales to rise over the next three months.

When it comes to pricing, a net balance of 34% of surveyors in Scotland report that prices rose over the last three months, up from 29% reported in the survey previous. Looking ahead, a net balance of 22% of survey respondents anticipate that prices will continue rising over the next three-month period.

Regarding the rental market, a net balance of 50% of respondents in Scotland expect tenant demand to rise and a net balance of -50% expect landlord instructions to fall. In turn, surveyors in Scotland expect rents to fall flat over the next three months.

Commenting on the sales market, Thomas Baird, MRICS of Select Surveyors, said: “There has been an injection of confidence into the Scottish market, with the interest rate drop beneficial, and prices remain strong. The summer slowdown always affects home report instruction levels however numbers are higher than last year.”

Discussing the rental market, Carolyn Davies, MRICS of Savills, added: “Landlord rent expectations are still being matched by the undersupplied market and we are still seeing landlords leaving the rental market for a variety of reasons.”

Commenting on the UK picture, RICS chief economist, Simon Rubinsohn, said: “The somewhat flatter tone to the feedback to the July RICS Residential Survey highlights ongoing challenges facing the housing market. Although interest rates were lowered at the latest Bank of England meeting, the split vote has raised doubts about both the timing and extent of further reductions.

“Meanwhile, uncertainty about the potential contents of the Chancellor’s autumn budget is also raising some concerns. Against this backdrop, respondents continue to report that the market remains particularly price sensitive at the present time. “