SNP tax is ‘hitting the housing market’

THE SNP’s replacement for stamp duty has led to a drop in the number of family homes on the market despite soaring demand, a report claimed yesterday.

The Royal Institution of Chartered Surveyors (RICS) survey revealed that the supply of properties for sale ‘remains a key concern’ as the number of those looking to sell property dropped for the ninth consecutive month.

This is despite a rise in demand, with more Scots looking to buy or move home, leading to greater competition for properties.

RICS director in Scotland Gail Hunter said the Land and Buildings Transaction Tax (LBTT) is continuing to have a ‘negative impact’ on the housing market.

The tax makes it significantly more expensive to buy a home costing more than £325,000, with many Scots families now facing additional fees and taxes when buying a property.

Miss Hunter added: ‘While there are regional variations, the overall picture presented by the latest survey is one of rising expectations as buyer interest increases.

‘However, respondents continue to cite a lack of stock as a key market concern.

‘The changes to LBTT continue to have a negative impact on instructions to sell in the middle to prime brackets of the market and this is having a detrimental trickle-down effect in other price brackets.

‘Unless supply increases, this could act to temper expectations in the months ahead.’

But a Scottish Government spokesman said: ‘RICS’ own survey data shows the performance of the Scottish housing market compares favourably to the rest of the UK.’