Scotland will introduce a Land and Building Transaction Tax relief for first time buyers starting June 2018. The move mirrors the stamp duty relief in England and Wales, announced in the Autumn Budget by UK Chancellor Phillip Hammond.
First time buyers will not pay tax for properties priced 175,000 and under, which would translate into a tax break of up to £600.
According to Finance secretary Derek Mackay, the move would make 80% of the current first buyers market in Scotland exempt from Land and Buildings Transaction Tax. (source)
While we believe this to be great news for the people looking into buying that first home, we see a pressure on available stock due to the difficulties second steppers encounter when it comes to upgrading to a bigger home.
At Clyde Property, we have seen unprecedented demand from first time buyers in 2017, due to mortgage rates affordability and believe that competition at the lower end of the market will continue to mount in 2018.
The property market in both Edinburgh and Glasgow has continued to increase in opposition to some of the cities down South, who have shown a clear slow down in 2017. In fact, research has shown that Glasgow and Edinburgh show the fastest price increase in UK, with Glasgow leading the race – with a 7.9pc property price increase in the last year. (source)
Clyde Property is a leading independent, multiple award winning estate and letting agent with 30 years’ experience in selling and letting property in Scotland. Just call today, for friendly, impartial advice on finding your next dream home.