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Post-election 'bounce' expected for property prices

10 May 10 23:52 GMT

Surveyors say spring has brought renewed optimism to the Scottish housing market, with a post-election "bounce" anticipated.

According to the Royal Institution of Chartered Surveyors (Rics), house prices in April have continued to rise at a steady pace.

Sales of properties have also been rising, although at a slower rate than last month.

More surveyors reported being confident of the outlook for prices.

According to the Rics report, 15% more surveyors reported a rise in house prices in April, slightly down from 18% the previous month.

Two-thirds - 66% - said there had been an increase in selling activity, compared with 84% in March.

The survey showed increased optimism that prices will rise, but there is less confidence about sales increasing.

Paul Taylor, of J & E Shepherd in Dundee, said there had been a "decent" level of activity, but expressed concerns about an oversupply of properties on the market.

Richard Clowes, of DM Hall in Galashiels, said it had been another busy month.

He added: "Hopefully this will continue into May.

"We will have to wait and see how things pan out post-general election."

Chris Highton, of Allied Surveyors Scotland in Selkirk, said there had been a "flurry of activity" before and during the Easter break.

"It would appear that more cash is finding its way into the system and this should allow the number of sales to continue to increase," he said.

'Sales boost'

Rics Scotland spokeswoman Sarah Speirs said the housing market had been "under the shadow" of the general election for much of 2010.

She said many potential buyers had decided to wait for the outcome before going ahead with any purchase.

But she added: "The start of spring, however, has seen renewed optimism with the good weather improving sentiment and surveyors expecting an increase in both sales and house prices.

"The housing market often sees an increase in new instructions in the early part of the year with sales boosted in the spring and this year has been no exception."

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