22 Oct 2014

Press Release: What does the rest of the year hold for the Scottish property market?

Press Release: What does the rest of the year hold for the Scottish property market?

Michael Sinclair, Partner, examines the main factors which will drive the market between now and the New Year.

Michael Sinclair, Partner, examines the main factors which will drive the market between now and the New Year.

The top end of the property market across Scotland looks set for an autumn and winter boost on the back of stamp duty changes announced by the Scottish Government.

The impact of the Land and Buildings Transaction Tax (LBTT), which will replace stamp duty in Scotland from April 1, is expected to lift homes sales in the remaining three months of the year.

Whilst removing the tax burden completely from all homes costing less than £135,000, charges imposed on more expensive homes will rise.        

For example, for a home costing just over £1million, stamp duty of £40,000 will be replaced by a new levy of £77,300.

We are waiting to see how this will impact the market, because between £300,000 and £400,000 is the point in the market where the new system becomes more expensive.

We expect those buyers at the lower end of the market won't want to buy until after April 1, while those at the upper end will want to complete before the end of March.

This may mean the traditionally quieter winter months could be busier than in previous years.

And at the lower end of the market, there will be a heavy demand from April 1, which could push up demand and sale prices.

So there is an argument that buying at the lower end now - when demand isn’t as high - may not be a bad thing, even though Stamp Duty may cost you more.

The rise in homes coming on the market follows a somewhat stale September, when many home owners awaited the outcome of the independence referendum before deciding whether or not to sell.

The impact that had on the property market was not huge – but there is little doubt it put things on pause.

There was a lull in instructions, sales and even viewings in the weeks before polling day and again in the weeks after. It was more notable in Edinburgh, where there is a big investor market.

However, in recent days and weeks there is growing evidence to suggest that market activity is improving. We have certainly experienced an increase in instructions to sell.

In the leasing market, there remains a shortage of properties for rent across the country, particularly in Glasgow, Edinburgh and Aberdeen.

This continues to fuel high rent prices, particularly in the Granite City.

The average rent in Aberdeen has remained over £1,000 a month in Aberdeen for a year now and has risen by 6.4% since this time last year.

There has never been a better time to lease property in Aberdeen and the surrounding area. Ellon is another area which is busy for us.

In Edinburgh, eight out of 10 properties are being leased within a month and nearly half are going within a week.

In Glasgow, it is taking on average 11 days less to lease a property than it did last year – so there are positive signs right across the country.

Aberdein Considine has property shops and leasing offices in Aberdeen, Perth, Edinburgh and Glasgow, as well as Peterhead, Ellon, Inverurie, Westhill, Dyce, Banchory, Stonehaven, Livingston and Bathgate. 

We offer clients a complete legal and financial advice service from all our branches – and pride ourselves on making top lawyers and advisers accessible on the High Street.

Mike Sinclair, Partner


For further information please contact Ryan Crighton on 01224 337454 or alternatively email rcrighton@acandco.com



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