High-end property sales fall by35%

Scotland has suffered the largest fall in sales of top end properties anywhere in Britain, after deals for homes worth upwards of £1 million fell by more than a third.

In the first six months of 2017, 53 houses in this price tag were sold north of the border – down by 35% from the same period last year.

Across Britain as a whole, sales were down by just 1%, falling from 6,684 to 6,613, research by the Bank of Scotland showed.

The drop in Scotland contrasts with the 55% increase in sales of £1 million properties seen in north west England.

Yorkshire and the Humber experienced a rise of 45% and in the West Midlands there was a 33% jump.

Edinburgh saw the biggest fall in million-pound homes sales in Scotland, with 19 (38%) fewer deals in the first six months of 2017 compared to the same period last year.

But the capital accounts for more than half of £1 million property sales in Scotland, with 31 transactions recorded.

Under the Land and Buildings Transaction Tax, which replaced Stamp Duty in Scotland, a charge of 12% is applied on sales of homes worth more than £750,000.

According to estate agents, who have criticised the LBTT scheme, this means a £1.2 million house in Scotland would be taxed at £102,350, compared to £63,750 in England.

Carl Warden, senior associate at Bell Ingram estate agents, said last month that the Scottish system had “stunted the performance of the property market for those higher value transactions”.