New tax break for Scottish house buyers needs to come quickly, says property expert
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A MOVE today by the Scottish Government to support house buyers has been welcomed by a property expert who said there is now "some urgency" to see the new regime begin.
The Scottish Government announced that the level at which land and buildings transaction tax (LBTT) kicks in will be raised from £145,000 to £250,000.
Faisal Choudhry, head of Savills Residential Research in Scotland said: “This is good news for buyers of Scottish property who will save money in what is likely to be a challenging economy. It is also positive for sellers who will see demand for property rise further. Clearly the move will largely benefit first time buyers, however there will be a knock-on effect throughout the market which will have a stimulating effect on the economy.
“This is the first time the LBTT structure has been tweaked since it was introduced five years ago, and we hope that this will be part of a long term adjustment rather than a short-term fix. If you are buying at £250,000 and above under the new regime you will now be saving £2,100. Although the saving is larger in England, Scottish property still represents comparatively good value for money. Prior to the pandemic, Scotland had seen record market activity, with demand outstripping supply.
“The Scottish Finance Minister has not been able to confirm when the regime will start, but clearly there is some urgency required here as the announcement could have a negative effect in the short term while people sit on their hands until the new rates are introduced. This would be counter-productive in terms of the Scottish Government’s aims of raising tax revenue, stimulating the economy and supporting the market in Scotland.”
Related: Kate Forbes unveils Scottish Government support for house buyers
