LBTT relief is the latest welcome leg- up for first- time buyers

Shawn Wood examines some home helps and hindrances

Many people trying to buy their first home would agree it can be a challenge of endurance.

The difficulty in Scotland – and the UK as a whole – has been well documented but a number of support initiatives have been brought in to combat this.

The latest of these sees first- time buyers granted relief from Land and Buildings Transaction Tax ( LBTT), which was introduced to replace stamp duty in April 2015.

The relief, which came into effect at the end of June, will reduce the tax payable on a purchase for first- time buyers by up to £ 600.

It joins a raft of measures which have been brought in to ease the burden of securing that first home and reduce competition from second home buyers.

First- time buyers can access an ISA Bonus through Help to Buy.

A 3 per cent tax on people buying additional property has been introduced and tax relief on mortgage payments is being phased out over the next three years – making it more expensive for landlords to run a buyto- let.

There is also the Lowcost Initiative for First Time Buyers ( LIFT), a shared equity scheme which supports people to buy their first property. However, the catch is that those on it can only put forward an offer at the valuation price of a home.

During the recession, many homes in the heart of Edinburgh were being sold for less than the valuation price and this worked in favour of firsttime buyers.

Since the recession ended, the housing market has been booming and in Edinburgh there is virtually no chance of a property being sold at its valuation price. In fact, many go for as much as 15 per cent more.

The implications are significant for first- time buyers. It can mean having to save thousands of pounds extra on top of what is expected.

Competition is fierce and those with aspirations to live in a desirable area of the city centre may have to save religiously as soon as they enter full- time work.

The reality for most is that they will have to settle for a place in a less gentrified part of town, although Edinburgh’s rich built environment means attractive homes can be found across the city and there are bargains out there.

Lots of young people want to live in the heart of a city but, if their wish to own a property trumps this, they would do well to look at new- builds springing up on the outskirts of Edinburgh.

Developments in places such as Shawfair, Bonnyrigg and Dalkeith are coming to the fore and while there is an imbalance between housing supply and demand in Scotland, some semblance of progress is being made.

There is also a significant drop in house prices between the capital and neighbouring regions such as the Lothians and Fife.

Although prices did rise last year because of increased levels of interest, areas such as Midlothian and West Lothian are much more affordable and come with ease of access to the capital – and much of the Central Belt – for those who commute.

LBTT relief to support first- time buyers should be commended but it is not clear what other steps the Scottish Government can take.

For most first- time buyers, prices need to settle down before they can afford to live where they want.