Owners of more expensive properties in Scotland are rushing to put them on the market ahead of next April’s Stamp Duty Land Tax reform.
From next spring, buyers of properties over £1m will have to pay tax at the rate of 12% – double what they pay now. However, anyone buying a home at £325,000 or above will pay more than they currently do.
The announcement by Scottish Finance Secretary John Swinney of the impending tax change has prompted vendors to sell now, with purchasers anxious to complete before the deadline.
Dr John Boyle, director of research at Rettie & Co, said that this year, there has been no autumn slowdown.
He said: “There are a lot more inquiries coming into the market than would be normal at this time of year. At the mid to top end of the market it is at a much higher level than we would expect.”
He added: “It is most noticeable in Edinburgh, Aberdeen and the west end of Glasgow, where there are more properties above £325,000 than elsewhere. It is these type of properties that are starting to come on to the market now.”
During the first half of this year, just 43 homes changed hands in the whole of Scotland for more than £1m. However, yesterday Rightmove was listing 57 properties worth more than £1m in the Edinburgh area alone.
From April, in Scotland, no tax will be due on purchases under £135,000; 2% will be payable between £135,000 and £250,000; 10% on properties between £250,000 and £1m; and 12% above £1m.
Comments (2)
that's for PB & JNE…… one of my rare non-AM posts! Lol
Aah Yes, I remember the Stamp Duty holiday back in the early 1990's…..with one agent quoting……we have arranged benches in the street to cope with the amount of people queuing to get their keys for their new home before the deadline expires!……. ever the optimistic estate agent! lol Yes, it made a difference then and a few years ago however the Scottish Government change is certainly a double edged sword……what awaits us when the 10% levy applies?!……Aah Yes….. the optimistic estate agent…… we have arranged benches down the street outside our office to cope with the new home owners fainting when they think about how much Stamp Duty they have to pay! lol Tis a Double Edged Sword indeed!