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Number of High-End Residential Property Sales in Scotland on the Rise

Comparing the last three months of 2014 to the same period in 2013, the number of sales of residential properties costing £1 million or more in Scotland, rose by 9 per cent.

The findings by London-based estate agents Knight Frank show that in the last quarter of 2014, sales that exceeded £1 million, took place in eleven different Scottish local authorities including Edinburgh, East Dunbartonshire, Fife and Aberdeen City.

According Knight Frank, the reason for this sharp increase is two-fold: namely the result of the referendum on Scottish independence; and the announcement of the Land and Building Transaction Tax (LBTT), which from April 2015 will increase purchase taxes

Commenting on the first reason, namely the result of the independence referendum, a Knight Frank source said:

‘After months of doubt about the outcome, buyers felt more secure about making a decision to move house or purchase a property..’

The same spokesperson commented on the impending Land and Building Transaction Tax (LBTT):

‘Buyers now have a window when purchase costs are lower, especially given the changes made to stamp duty at the Autumn Statement in December, and many are taking advantage. From April this year, when the new LBTT rules come into force, a buyer of a property valued at £1 million will pay nearly £35,000 more in purchase taxes..’

‘We expect that the extra impetus for buyers of property valued above £1 million to complete sales before the new LBTT levy comes into force in April will mean the number of high value property sales continues to rise for several months. Even with the new higher purchase taxes, the relative cost of property in Scotland compared to London and the South of England means there is still a large effective discount for buyers making the move north..’

Also commenting, Ran Morgan, also of Knight Frank, stated:

‘Despite forthcoming higher levels of tax, Scotland still offers excellent value compared with London and the south. Because of this we expect the market will be able to absorb the tax change in the long run. Ultimately, Scottish property remains incredible value for money..’ 

Contact Us – High-End Property Lawyers in Scotland

Regardless of price, if you are looking to purchase a property or require legal advice regarding a property or mortgage, our team of specialist property solicitors are here to help. Contact us today by calling 0141 530 2542 or by using our online contact form.