Land and Buildings Transaction Tax (LBTT) Effect

25
Jun
Average property prices in east central Scotland have fallen by a half percentage in the period between April and June 2015, when compared with the same period last year, according to figures from ESPC. This comes in contrast to the 18% rocket in average house prices as seen in our April house price report.

This could be explained by the surge in higher-priced properties being brought to market at the start of the year due to the introduction of Land and Buildings Transaction Tax (LBTT). There are less properties over £300,000 now being sold, therefore driving down average prices.

However, by comparing the property prices for the first six months of 2015 with the first six months of 2014 for east central Scotland, we see that they have increased by 9%.

Less homes are being brought to market, with a decrease of 5.6% compared with last year. However, conditions are still more favourable to the seller as more homes are continuing to be sold, with an increase by 6.9%, compared with that period last year. Homes are increasingly achieving their Home Report valuation, with 58.7% reaching their valuation, compared with 56.7% at the same time last year.

Gorgie and Dalry are continuing to be a popular choice, particularly in the first time buyer market, with prices for one bedroom flats rising by 11.1% compared with the same time last year. In comparison, Leith Walk and Easter Road have seen a small price increase of 0.4%.

Similarly Stockbridge and Comely Bank are areas that are continuing to see growth in property prices. A two bedroom flat is selling at an average price of £276,551 compared with £251,467 between April and June 2014 last year – this is a 10% increase.

The full article can be read at ESPC.