Homes For Scotland Calls For LBTT Price Ceiling To Be Raised

Homes for Scotland (HfS) has called for the Land and Buildings Transaction Tax (LBTT) price ceiling to be raised in an effort to increase investment in the country.

The organisation has expressed concerns that current proposals, which were introduced a year ago, are having a "detrimental effect" on the middle to higher end of the housing market.

A 10% tax band is payable on properties worth £325,000, while in England the rate only becomes effective on purchases over £925,000.

HfS has now called on the Scottish Government to introduce a similar measure in Scotland, which will ensure the country "remains an attractive place in which to invest".


Director of Policy Karen Campbell said: "The impact of the new rates and bands varies between market segments but a real additional burden has been placed on some buyers and this is clearly affecting sales as many people are choosing not to move as they find the cost too high.

"There is also a disproportionate effect in regions such as Aberdeen, Aberdeenshire and Edinburgh where the average family home commonly exceeds £325,000.

"Given that people purchasing at the higher end of the market tend to be discretionary movers, meaning they are choosing to move rather than having to because of circumstance, our concern is that, by staying put, they block others from progressing onto or up the property ladder and thus exacerbate the country's housing crisis.

"That is why we are suggesting that the current five per cent band be extended up to the price ceiling of £925k, mirroring the position south of the border to help ensure Scotland remains an attractive place in which to invest. This is all the more important given the fact that LBTT generated lower than expected receipts from housing transactions in its first year, with the gap plugged by income from the non-residential sector."

(LM/MH)