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Scottish Property Values Rise At Twice English Rates

The value of Scottish properties doubled the rate of English properties in March ahead of the new property tax that came into force in Scotland in April.

The latest house price index from Your Move/Acadata shows that the average price of properties in Scotland rose by 11.2% over the past 12 months compared to only 5.7% South of the Border. Many experts have stated that it was the need to beat potentially higher costs under the Scottish government’s Land and Building Transaction Tax (LBTT). This can be shown by the record number of properties over £1 million being sold in Scotland with 36 changing hands ahead of the introduction of the new tax.

Land and Building Transaction Tax

Under the reforms, a property with the value of up to £145,000 will pay 0% in tax with other changes in place above the threshold. A property between £325,000 to £750,000 will pay 10% tax, with properties over £750,000 being charged 12% tax. A house bought for £280,000 for example would fall into many brackets with 0% charged for the first £145,000, 2% for the next £105,000 and then 5% for the next £30,000 meaning that over £3000 is charged in LBTT tax.

Christine Campbell, regional managing director of Your Move and author of the report, said: “In what would have been an unimaginable trend just a year ago, house prices are now rising faster in Scotland than in London.

“In part this is due to a short-term scramble to avoid the new Land and Buildings Transaction Tax. For the top of the market especially, a pre-deadline rush has boosted the average price paid in March, so the latest surge in prices is unlikely to be sustained to quite the same extent in April under the new regime.”

The figures that were released show a rise in the number of properties prior to the tax being introduced. However, figures post the introduction of the LBBT have not yet been collected

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