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16/06/2016

LBTT Boosts Scottish Home Sales By 11% - Your Move

Scottish home sales have increased 11% after the introduction of a new property tax, according to estate agents Your Move.

In the first year of the Land and Buildings Transaction Tax, property sales have jumped to 103,344 compared to 93,601 sales in 2015.

However, a lack of higher value homes has led to average house prices declining 7.8% year-on-year.

Christine Campbell, Your Move Managing Director in Scotland, said the figures confirm lower purchase taxes for property "can significantly boost activity" in the house market, while also allowing first time buyers to "get a foot on the ladder".

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"After a year of the Land and Buildings Transaction Tax (LBTT), it's now possible to see its impact across the Scottish housing market," she said.

"The Scottish Government should consider lifting the LBTT bands higher, if they want to build on the foundations of this policy, in order to support Scotland's fragile property and construction sector.

"However, house prices are still down 7.8% year-on-year in April, with a typical home in Scotland now worth £170,667. In part, this drop in property values was caused by a spike in high value home sales last year, before the LBTT was introduced, but today's market hasn't regained those losses yet."

(LM)

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