Latest news with #LBTT
Daily Record
a day ago
- Business
- Daily Record
Dumfries and Galloway property market seeing increased activity and improved buyer confidence
The residential team at property consultants Galbraith handled 14 per cent more sales in the first three months of 2025 than the same quarter last year. A property consultancy claims there is improved buyer confidence and increased market activity in Dumfries and Galloway. The residential team at Galbraith handled 14 per cent more sales in the first three months of 2025 than the same quarter last year. Staff carried out 241 property viewings and 43 market appraisals, with transaction values ranging between £200,000 and £765,000. And the average percentage prices achieved were 3.5 per cent over the asking price. Partner and head of sales for Galbraith based in the Castle Douglas office, David Corrie, said: 'We have witnessed buyer confidence improving in the market due to falling interest rates and therefore mortgage rates coming down, allowing people to reengage and make a move. 'Spring time is a naturally active time of the year, spurred on by the favourable weather encouraging sellers to get their property ready for the summer market. 'There is an active second home market in Dumfries and Galloway and the increased Additional Dwelling Supplement (ADS), now up to eight per cent, is starting to have a ripple affect across the whole market. 'People are reassessing a second home purchase, particularly in the higher end of the market when increased levels of Land and Buildings Transaction Tax (LBTT) are also being paid, and consequently prices are being restricted. 'However, prices remain stable in the £200,000 to £400,000 market where properties with interesting features, a small portion of land or usable outbuildings remain in high demand. 'As such, there has been a number of successful sales completed at competitive closing dates where sensible pricing has been key. 'Buyers continue to be attracted to the area from the south as well as other parts of Scotland due to its accessibility from the central belt, the size and value for money and the semi-rural lifestyle on offer with stunning coastline and beautiful forest parks.'
The National
03-06-2025
- Business
- The National
'Mansion tax' for £1 million Scottish homes rejected by MSPs
The Scottish Greens had tabled an amendment to the SNP Government's Housing Bill in order to bring in a new top tax rate for properties which sell for more than £1 million. Currently, Scotland levies a Land and Buildings Transaction Tax (LBTT) on residential property sales above £145,000. READ MORE: SNP reject Reform UK claims they 'organised protests against Nigel Farage' For homes between £145,001 and £250,000, a 2% rate is paid, which goes up to 5% for properties between £250,001 to £325,000, and 10% for sales worth £325,001 to £750,000. The current top rate of 12% is charged on properties sold for more than £750,000. The Greens' 'mansion tax' amendment would leave those bands unchanged but would create a new tax rate of 15% on residential sales worth more than £1m. The party tabled other amendments to the same bill, including an additional charge for overseas buyers of Scottish properties, plans which would enable councils to further increase council tax on holiday homes, and proposals which would make it easier for tenants to keep pets and service animals in their home. However, on Tuesday the proposal was rejected by SNP, Labour and Conservative members of Holyrood's Local Government and Housing Committee. MSP Ross Greer (above), who tabled the amendment, told The National that it was 'disappointing' that MSPs rejected the proposal and that 'only the very wealthiest people in the country, who can afford to pay more, would have been impacted' by the new tax. The MSP continued: 'Scotland has enough wealth to end injustices like child poverty tomorrow, but far too much of this money is in the hands of a tiny number of super-rich people and big corporations. READ MORE: Scottish MPs panned over up to £3500-a-month taxpayer-funded London homes 'Property taxes are important to ensure the wealthiest people pay their fair share back into our public services. I hope other MSPs remember that when they next complain about cuts to public services due to a lack of money.' The SNP's Housing Bill is currently at Stage 2, where MSPs are considering amendments. The deadline for the end of Stage 2 proceedings is on June 6, after which an updated version of the bill with approved amendments will be published. Scrutiny of the bill was split between Holyrood's Local Government, Housing and Planning and Social Justice and Social Security committees.
Scotsman
19-05-2025
- Business
- Scotsman
Two countries divided by real estate policies
What Scotland can learn from UK Government incentives and regulatory changes Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... The real estate markets in Scotland and England present unique challenges and opportunities driven by marked differences in taxation, policy, and governance which influence investment and growth in their respective landscapes. Scotland is a compelling destination for real estate investment, but various challenges have hampered its potential. Conversely, despite rising prices and cost inflation, England and particularly London and the south-east, continue to attract domestic and international investors. Advertisement Hide Ad Advertisement Hide Ad Property taxation is one of the most marked differences. Scotland adopted Land and Buildings Transaction Tax (LBTT) while Stamp Duty Land Tax (SDLT) remains applicable in England. Fundamentally, LBTT is designed to be more progressive but higher tax rates for more expensive properties arguably deters investment in what is a critical segment for market vitality. It has also driven higher average tax rates in the commercial property sector in Scotland. Barry McKeown says government policy has significant influence on investment in Scottish real estate In contrast, SDLT in England has seen a series of adjustments intended to stimulate the housing market, which have helped to sustain market activity, particularly in challenging economic times. Government policy also has significant influence. Recent policy changes by the UK government - including measures to accelerate the planning process, reduce bureaucratic hurdles and enable quicker commencement of construction projects - are designed to stimulate growth. A further measure has been a significant increase in funding for affordable housing projects, addressing the chronic short-fall in housing stock for lower-income families. The UK government has also incentivised developers to incorporate sustainable practices in projects, with tax breaks for environmentally friendly construction projects. Furthermore, community-led housing initiatives aim to empower local communities to develop housing solutions that fit their specific needs, while investment in urban regeneration programmes aims to revitalise neglected and underdeveloped areas. Advertisement Hide Ad Advertisement Hide Ad Conversely, in Scotland, systemic issues continue, with a housing crisis characterised by a shortage of affordable homes and rising homelessness. Recent regulatory controls like the 'rent freeze' have impacted on levels of private investment in the housing sector and arguably further exacerbated the problem. Recent proposed changes to include Purpose Built Student Accommodation (PBSA) within the sectors covered by the proposed Housing (Scotland) Bill will affect that sector in the same way the rent freeze all but killed Scotland's Build-to-Rent sector. Whilst the Scottish Government's aim to increase housing supply and investment in social housing is ongoing (and a key part of the recently announced Programme for Government), we urgently need a more streamlined planning process - with simplified planning regulations and clear, consistent policy frameworks to help attract private investment in the sector. We need less regulatory controls to attract investment and increase stock in the private rental sector. Proper consultation with the investment and development industry is essential to understand the massive impact such regulation can have. Real estate investment is crucial for economic growth. Enhanced support for private investment and targeted tax incentives are key to attracting investment and in turn will drive employment and stimulate local economies. Without question, maintaining investor confidence through stable and predictable policies is critical. Advertisement Hide Ad Advertisement Hide Ad Whilst both Scotland and England face distinct challenges in their respective real estate markets, UK Government policy initiatives in England specifically targeted at the real estate sector could yet offer invaluable insight. Strategic policy interventions, investor-friendly taxation and a focus on sustainable development can unlock substantial growth and investment opportunities and might help Scotland revitalise its own real estate sector, solve the housing crisis and deliver on a wider growth agenda.
Scotsman
15-05-2025
- Business
- Scotsman
Scotland's punitive property tax regime defies explanation
The current LBTT policy is simply political posturing which makes little or no economic sense, writes David J Alexander Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... When a major think tank states 'it is hard to think of any economically rational strategy that would justify recent policy on Land and Buildings Transaction Tax (LBTT), which has made Scotland's most ill-conceived tax ever bigger and more damaging' you would assume it would make policy makers review their ideas. Not a bit of it. Those were the words of the Institute for Fiscal Studies (IFS) in their report 'Assessing Scottish tax strategy and policy' yet LBTT remains central to the Scottish Government's policies. The IFS stated that 'Scotland's increase in the surcharge in land and buildings transaction tax (LBTT) on the purchase of second and rental homes, from 6 per cent to 8 per cent… continued a trend of increases in this 'additional dwelling supplement'', and 'the move makes an already highly economically damaging tax even worse.' Advertisement Hide Ad Advertisement Hide Ad It goes on to state: 'The change will encourage owner-occupation but will make it even more difficult and expensive for those who remain in the rental sector – tenants (who are likely to face higher rents as a result of the policy) as well as landlords. And the policy does not just penalise the rental sector; it penalises transactions within the rental sector. Preventing a landlord who wants to sell their property to another landlord from doing so is bad for both landlords and tenants.' David J Alexander is CEO of DJ Alexander Scotland Ltd (Picture: Laurence Winram) Which brings us to the latest monthly statistics on revenues from LBTT which show that this is now £699.1m (18.6 per cent higher than same period the previous year) for the period between May 2023 and April 2024. Of the £699.1m taxes raised £211.8m is from the additional dwelling supplement (ADS) which is charged on second homes and properties purchased by landlords and property investors to rent. This is now 30.3 per cent of the total raised and is £50.8m higher than the previous 12-month period. Almost all the residential taxes arose from properties sold for more than £325,001. The 19,100 transactions above this threshold collected £405.1m which is 83.1 per cent of the total £487.3m raised in LBTT (this is the figure for residential sales with the ADS figures removed). This means that the average tax levied per transaction was £21,209. Advertisement Hide Ad Advertisement Hide Ad The IFS understands that the current LBTT policy is simply political posturing which makes little or no economic sense but plays up to the idea that punishing 'the rich' is progressive. The fact that the majority of people who buy a house valued at over £325,000 would never consider themselves rich is irrelevant. Yet the large amounts of tax paid by property investors is testament to their faith in the Scottish market. These taxes also do not seem to be deterring homebuyers. But we need a level playing field with our UK counterparts and we need – as the IFS point out – a proper tax strategy in which there is a reasonable explanation of why these taxes are so high and what benefits accrue from them. There must be another way to raise revenue which does not see homebuyers and property investors as cash cows who can endlessly be taxed. If higher property and income taxes start to deter individuals and companies from future investments in Scotland, then far from being progressive taxation it will be regressive.
Glasgow Times
28-04-2025
- Business
- Glasgow Times
Inside stunning new view home at £69m East Kilbride development
Avant Homes Scotland has opened a new four-bedroom detached view home at its £69million, 252-home Jackton Green development in East Kilbride, South Lanarkshire. Located off Jackton Road, the exciting new development comprises a mix of three and four-bedroom properties. The new homes range from £249,995 for a three-bedroom terraced Hazelbridge house style to £412,995 for a four-bedroom detached Trewbrook. READ MORE: 'Exceptional' Glasgow flat next to popular park up for sale READ MORE: Major works underway for new homes in bustling Glasgow area Announcing the news, the developer said selected properties at the development are available with a range of incentives. These include part exchange, £10,000 deposit paid, LBTT paid, five per cent deposit contribution, flooring included and Avant Homes' Dream Move Package. The Dream Move Package includes LBTT paid, £1,000 paid towards legal fees, a flooring package and turf to the rear garden. On top of that, buyers will receive a £1,000 gift voucher on legal completion. Those looking to buy a new home now have the opportunity to explore the three-storey Tidebrook house style, which is priced from £379,995. On the ground floor, the Tidebrook features an open-plan kitchen, dining and living area with French doors opening into the garden. Inside the stunning new view home at £69m development (Image: Supplied) (Image: Supplied) There is also a utility room, WC and storage cupboard. Upstairs, there is a second living room, two double bedrooms, and a generous single bedroom. There is also a family bathroom. Meanwhile, a second staircase leads to the top floor, where the main bedroom benefits from the privacy of the entire second floor and features a dressing area, built-in storage, a large en-suite and Velux windows. (Image: Supplied) Avant Homes Scotland sales director, Lisa Archibald, said: 'We've seen a fantastic response to Jackton Green and we're excited to now open the doors to our new view home. 'It gives buyers the chance to step inside one of our most popular family house styles and get a real feel for the space and layout. 'With a range of incentives currently available, it's a great time for buyers to visit the development, speak with our sales team and discover how we can make their next dream move a reality.'
