A net balance of -68% of Scottish surveyors reported that new buyer enquiries declined, which is the lowest this balance has been in several years.

New supply also fell further into negative territory. A net balance of -47% of Scottish respondents reported a fall in new instructions to sell, which is the lowest this balance has been since late 2022, and the sixth consecutive month it has been in negative territory.

Unsurprisingly, with limited demand and limited new, respondents noted a decline in sales through August. A net balance of -47% of respondents in Scotland noted a fall in newly agreed sales in the most recent report, down from the -15% that was seen in the July survey.

Looking ahead, respondents in Scotland do appear to have some degree of optimism that there will be an improvement, with a net balance of 13% of respondents expecting sales to rise over the next three months.

On the pricing front, a net balance of 5% of respondents in Scotland report that house prices rose in the August survey, which is largely in line with the balance seen in the previous report. Looking ahead, prices are expected to rise but marginally so, with a net balance of 5% of Scottish respondents anticipating prices will increase over the next three months.

On the sales market, survey respondent Grant Robertson FRICS of Allied Surveyors Scotland Plc in Glasgow commented: “The market is slowing sharply with established property chains falling though and resales establishing at lower levels. Whether this is a post summer blues or more likely a slowdown tied to challenging mortgage rates and tax levels remains to be seen.”

Regarding the rental market, Ian Morton MRICS of Bradburne & Co in St Andrews said: “The rental market is generally buoyant with demand outstripping supply in some sectors.”

On the UK picture, RICS head of market research and analysis, Tarrant Parsons, said: “The Bank of England’s increasingly hawkish tone, on the back of renewed volatility in global energy markets, is a reminder that the borrowing cost outlook could yet deteriorate further.

“And with the October Budget approaching, speculation over potential changes to property taxation is adding another source of caution for both buyers and sellers. As such, headwinds over the shorter term remain pronounced, even though recent market trends have appeared more stable.”