The Herald - The Herald Magazine
THE VOICE OF PROPERTY
WHEN LBTT replaced the Stamp Duty tax in Scotland in 2015, many people thought the highercost bands would curtail prime market activity, resulting in a revenue shortfall to the Scottish Government.
After a reflective blip, the market resumed… and then along came Covid and activity shot off the scale, turning LBTT into a hero for government coffers.
The latest LBTT figures for the whole of 2021 reveal £410.1m was received from Scottish homeowners – a whopping 77.1 per cent increase compared to 2020’s £231.5m and a 45.7 per cent rise compared to the £281.4m raised in 2019. The second home and buy to let market is also booming, with £166.7m raised in 2021 – 66 per cent up on the £100.1m in 2020 and 45.9 per cent higher than the £114.2m revenue in 2019.
David Alexander, chief executive officer of DJ Alexander Scotland, comments: “These figures highlight how lively the Scottish market has been over the last year. The large increase between 2020 and 2021 is to be expected given the slump in sales at the start of the pandemic, but it is the substantial growth compared with 2019 which is so striking.
“To have LBTT revenue almost 50 per cent higher in sales to both homeowners and second homeowners, buy-to-let, and property investors, indicates a continued demand in the market which is at levels we haven’t seen before.
“The last year has seen the Scottish Government receive £576.8m through LBTT from all property buyers compared to £395.6m in 2019. The last six months has had the majority of the highest ever levels of LBTT paid since the tax began.”
He concludes: “It is unlikely this level of sales will continue at similar levels in the future, but I can see strong demand in the lettings sector being maintained in the coming year.
“The reason is many EU citizens who are legally allowed to work in the UK returned to their home countries at the start of Covid-19.
“I think they will now return to the UK to live and work once the impact of the pandemic recedes in this country and in the EU. Therefore, it is extremely likely we will see demand in the private rented sector remain very high for the foreseeable future.”
A NEW development of 49 three and four-bedroomed houses and twobedroomed apartments has been announced by Edinburgh-based Ediston Homes, following the acquisition of a site at Neilston Road in Paisley. The company says the collection of homes will set itself apart through a combination of timeless architecture and contemporary urban designs by award-winning architects O’Donnell Brown. Every home at Printers Place will include interiors and finishes which have been designed with simplicity in mind, while oversized windows, interesting angles and roof lines give a nod to Paisley’s historic industrial aesthetic.
The design will also create a new area of central green space giving residents access to an outdoor recreational area. Printers Place is located within a quiet town centre neighbourhood only a short drive from Glasgow Airport and a 10-minute train journey into Glasgow city centre. For more details visit edistonhomes.com