Lending figures for the first quarter of the year have revealed the highest level of borrowing for home buying since the 2007 crash.
This leap in home buying coincided with the run up to the implementation of the new stamp duty tax, which came into force on April 1 of this year.
As we reported previously, the new Land and Building Transaction Tax (LBTT) came into force on April 1. To recap – the LBBT tax is Scotland’s version of the Stamp Duty tax and is applied to any additional property, such as a second home, or a buy-to-let that costs more than £40,000.
And of course, the major point to take from these changes is the new 3% tax supplement on an additional property that meets the above criteria and costs more than £40,000.
Racing to beat the legislation
It would seem that many have rushed to buy any investment they were thinking of in the first quarter of the year – to beat the new LBTT tax.
According to our source, the market had its best opening quarter in 9 years – with an average of 71,710 house purchase loans granted across the first three months.
In total, 210,468 house purchase approvals have said to have been granted this year, which is a 13.5% rise compared to the first three months of last year – which came in at 185,356.
Whilst some landlords missed the deadline before the tax changes came into force, clearly many were savvy enough and avoided paying out an extra chunk in LBTT tax.
But whether you missed the deadline or not, if you have a property investment you are thinking of letting out, why not contact us?
Our dedicated team are available 7 days a week and have the contacts and market knowledge to get the perfect tenants renting your property. Contact our dedicated letting team at 0141 570 0111.