Following the political change and taxation differences, the Scottish property market is seen by many as a recovering market, or one that is a potential risk. However, according to a new analysis report, the Scottish property market remains a solid opportunity for investment.
The introduction of a new land and transition tax has ensured that the Scottish property market is still desirable to many and remains intact.
While some prime real estate has lost value as the market recovers from the transition, some of the medium market property has grown in popularity with the market becoming more affordable for some.
However, Edinburgh is proving to be the exception to the rule, with the number of properties in the prime real estate market attracting all sorts of buyers. Faisal Choudhry, director of Scottish residential research at Savills, who contributed to the report said: “In addition, both UK and Scottish Governments have introduced initiatives to support the lower value sector of the market in an attempt to revive both the house building industry and buyers on the early steps of the property ladder.“Buyers of homes below £400,000 are now receiving further assistance in the form of favourable rates of LBTT. Meanwhile, buyers of more expensive homes are taking on the burden of the new progressive taxation in Scotland.”
According to the report Scotland’s million pound market has felt the biggest brunt of the new taxation changes. The vast majority of sales in this bracket completed prior to 01 April, before LBTT was introduced however, some areas are now recovering.
According to Choudhry this is because: “As the economy improves, and buyers from both sides of the border adjust to the new taxation structure, we expect this upward trend to continue. While the million pound market is beginning to recover in Scotland’s capital, buyer activity in more provincial locations remains subdued.”
He added: “Even taking into account the additional burden of LBTT, Scotland remains excellent value for money compared with other parts of the UK,’ he added.
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