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Home sales in Scotland boosted by property tax change

  • 15/06/2016
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Home sales in Scotland boosted by property tax change
Changes to property taxation in Scotland have led to an increase in sales, analysis from online estate agent Your Move reveals.

It said that home sales have jumped by 11% annually in the first year of the Land and Buildings Transaction Tax – the equivalent of Stamp Duty Land Tax in Scotland, compared to the 12 months before the tax was introduced.

House prices held steady in April, despite the new LBTT surcharge on buy-to-let properties and second homes, which was introduced to mirror the tax changes in England and Wales.

However, average house prices overall were down by 8% year-on-year, due to a lack of higher value home sales. The average house price in Scotland is currently £170,667.

Christine Campbell, Your Move managing director in Scotland, said: “These figures confirm that lower purchase taxes for property can significantly boost activity in the housing market, while also making it more affordable for first-time buyers to get a foot on the ladder.

“Since the introduction of LBTT, growth in house prices has been subdued. The average property value in Scotland has only grown 1.74% in the last six months, compared to 3.19% for England and Wales over the same period. The tax has particularly hit homes at the top of the market, as these properties have become more expensive to buy after the introduction of LBTT. So while there has been an upswing in sales, it has come at a cost for some.”

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