First-time buyers to get help onto housing ladder

of their charitable status in Scotland, but escaped this after making improvements in widening access and diversity.

Yesterday’s move will not affect this status, but remove their eligibility for rates relief.

The decision to allow special schools to remain exempt was welcomed by the Royal Blind School in Edinburgh. Mark O’donnell, chief executive, said: “If the Royal Blind School had become liable to pay business rates this would have resulted in an additional cost of over £100,000 a year.”

The decision to spare universities was also welcomed. “This is a sensible approach and allows universities to help grow Scotland’s economy,” a Universities Scotland spokeswoman added. First-time buyers are to get fresh tax breaks to help them onto the housing ladder which will see 80 per cent of them exempt from the duty altogether, the Finance Secretary has said.

Homes up the value of £175,000 will be exempt from land and buildings transactions tax (LBTT) under the budget plans unveiled by Derek Mackay.

The move comes after Chancellor Philip Hammond exempted first time buyers from stamp duty – the equivalent tax in England – for homes up to the value of £300,000. Scottish ministers say lower house prices in Scotland means £175,000 is a roughly comparable figure north of the Border. Mr Mackay said the move will “make home ownership a reality for more of our young people.”

But the move does not go far enough according industry body the Royal Institute of Chartered Surveyors (RICS) Scotland.

Policy chief Hew Edgar said: “Whilst this change has the potential to stimulate activity in the short term, it comes at a time when the market is subdued, and does not tackle the overarching problem of housing shortage supply across all tenures.”

He added: “Once again, we call on Scottish Government to review the current LBTT as a priority going forward as this current framework is not only limiting market activity, but could ultimately bring the market to a standstill.”