Now property market slumps by 17pc thanks to SNP tax raid

HOME sales in Scotland plummeted in the past year amid fears an SNP tax has caused a slump in the property market.

Figures highlighting the falls came as a report showed rental price growth is lagging behind the rest of the UK.

The ‘concerning’ state of the housing and rental markets was revealed as experts claimed a raft of SNP policies – such as the Land and Buildings Transaction Tax (LBTT) – are having an impact.

Registers of Scotland yesterday published figures showing 9,144 residential properties were sold in March, down 17 per cent compared with the same month last year.

Meanwhile, the Office for National Statistics said rental growth was lagging the rest of the UK – at only 0.2 per cent in the year to June compared with England’s 1.9 per cent rise. Experts believe the downturn in oil revenue has hit rents, particularly in the North-East. They also said LBTT had led to a slump in house sales.

Scottish Tory economy spokesman Dean Lockhart said: ‘These are concerning statistics which, taken together, show Scotland is under-performing the UK as a whole.

‘The SNP have already had to admit their stamp duty replacement [LBTT] will bring in over £800million less than estimated and it is now clear the SNP have set their rates too high and are depressing the market.’

David Melhuish, director of the Scottish Property Federation, said: ‘There’s a lack of supply in the residential markets which is not helped by the current LBTT structure.’

Aberdeen previously had the highest average monthly rent of more than £1,000, but rental prices have sunk below £800.

Adrian Sangster, national leasing director at estate agent Aberdein Considine, said: ‘The average rental growth across Scotland is being held back by the Aberdeen market, which has suffered heavily due to the current downturn in the North Sea oil and gas sector.’

The report also shows the Scottish average house price was £143,106 in May, up 3.5 per cent on May 2016. The biggest rise was in Perth and Kinross – up 7.6 per cent to £182,254. The biggest fall was in Aberdeen, down 7.8 per cent to £164,277.

A Scottish Government spokesman said: ‘Property sales are holding up well compared with the rest of the UK. In the first five months of this year residential transactions above £40,000 have risen by 2 per cent on an annual basis.’

‘Depressing the housing market’