Scottish house sales hit 8-year high

first_imgResidential property sales in Scotland reached the highest level for eight years in January, as buyers rushed to avoid an LBTT surcharge, the latest Scotland House Price Index from Your Move reveals.Home sales in the first month of 2016 rose by 24 per cent year-on-year with the biggest surge witnessed in Midlothian with a rise of 38 per cent, according to the data.The hike in property sales helped to push up property prices by an average of 0.8 per cent, or £1,346, in January to £171, 079, up from 0.3 per cent the previous month, led by gains in Stirling where property values leapt by 13.5 per cent over the 12 months.The only areas in Scotland that saw a decline in sales from November to January, compared to the previous three months, were Aberdeen City and Aberdeenshire. In Aberdeen City sales fell by 11 per cent during this time period, partly due to the oil crisis and the large proportion of expensive homes in city which are hit hardest by the LBBT.Christine Campbell, Your Move Managing Director in Scotland, said that the Scottish housing market had easily outpaced property sales south of the border, as England and Wales only saw a 1 per cent rise over the same time period.“The surge in Scottish home purchases has been propelled by second-home and buy-to-let buyers eager to avoid paying the 3% Land and Buildings Transaction Tax (LBTT) surcharge. As this tax hike was only announced in December’s Scottish Budget, January’s surge in sales may only be the tip of the iceberg,” she said.In Midlothian, property sales have outperformed every other area, soaring by 38 per cent compared to the same month last year. “This growth has been aided by the lower rate of LBTT on the purchase of cheaper properties, with flat and terraced house sales accounting for the largest rise,” she added. “This trend can also be seen in Glasgow, which narrowly beat Edinburgh to become the area with the highest absolute increase in sales.”Campbell continued, “January marks the sixth consecutive month of year-on-year growth in house prices, as the market finds a sturdy footing, putting the shaky start to 2015 behind it. The boost in property values has been driven by improving economic conditions, with employment in Scotland at an all-time high. However, this stability may be under threat if the effects of the impending LBTT surcharge mirror those seen with the introduction of the original tax. There could soon be a swift peak in prices as investors rush to buy before the surcharge comes into force, followed by a dip in home values after the implementation of the surcharge.”residential property sales in Scotland Scottish home purchases surge Scottish house sales March 24, 2016The NegotiatorWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles 40% of tenants planning a move now that Covid has eased says Nationwide3rd May 2021 Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 Home » News » Housing Market » Scottish house sales hit 8-year high previous nextHousing MarketScottish house sales hit 8-year highThere was significant rise in the number of homes sold in Scotland in January.The Negotiator24th March 20160643 Viewslast_img read more