Scottish Housing Market Purchases and Sales Support & Stimulus

The Scottish housing market has seen a dramatic slump in sales and purchases since the introduction of lockdown restrictions in March. This has adversely affected consumer confidence in the market amidst concerns over the real risk of falling property valuations in the future. In order to support buyers to proceed with purchases and stimulate consumer confidence, I believe that the Scottish Government could consider waiving Land and Buildings Transaction Tax (LBTT) on a short term basis.

Why the contribution is important

Waiving Land and Buildings Transaction Tax (LBTT) on a short term basis would stimulate the property market to encourage property purchases to proceed early after lockdown restrictions have been lifted. This stimulus would also minimise and/or mitigate for risk of falling future property values and promote consumer confidence. Without such a measure, many purchasers and sellers may put off property transactions until later in the year/next year, which will likely contribute to risk of falling property values, adversely impacting on consumer confidence and the economy as a whole.

by DrT on May 05, 2020 at 03:00PM

Current Rating

Average rating: 4.6
Based on: 30 votes

Comments

  • Posted by Bettyw May 05, 2020 at 15:05

    Need to allow Conveyancers back into houses to do home reports to stimulate the housing market. Can easily maintain social distancing and get the housing market moving again

  • Posted by opendoor May 05, 2020 at 15:08

    i am due to complete sale of my home on 30th May and i would like to be able to do so and for removal company to be able to work

  • Posted by ScottM May 05, 2020 at 15:29

    I was due to complete the sale of my property the first week of lockdown, all paperwork is completed but as registrars etc. aren't open then nothing can happen so I too would welcome the safe re-opening of these critical departments and solicitors to get the thousands of properties and people in limbo just now 'completed'

  • Posted by PatientlyWaiting May 05, 2020 at 15:45

    Was due to complete on 3rd April and move to a new build, but due to Registrars not able to register and lack of removal company able to complete move we remain in property in England. Waiting to see how restrictions are lifted in both England and Scotland. Our buyers are renting and 1st time buyers so no real chain. Allow construction companies back, including sales office as well solicitors / registrars and removal companies to kick start house market across UK

  • Posted by JMc May 05, 2020 at 15:55

    a suspension or reduction in LBTT would be well worth considering...

  • Posted by Catriona24 May 05, 2020 at 16:11

    A family member was due to move/complete end of March., all paperwork completed & date agreed but construction was closed down. The housing market/construction & related getting back Safely would be welcome to all stuck in a situation which is adding to an already stressful situation

  • Posted by Furgen May 05, 2020 at 17:06

    I am currently buying my first home. Seller is waiting on docs from court and even when that is available not sure what restrictions are in place.
     Surely if you are moving within the same area and not moving regions or further afield the move should be allowed to go ahead. The opening of Registers of Scotland etc would help with this

  • Posted by dwillox1 May 05, 2020 at 18:33

    I agree with this idea. The housing market is vulnerable to economic shocks, by waiving LBTT for a short period of time, this could help stimulate the market and lessen the potential impact of a housing market slump.

    I believe home reports, valuations and marketing photographs can be conducted safely with social distancing measures in place.

  • Posted by Scotty141 May 05, 2020 at 18:58

    I agree I’m sure social distancing can be put in place we need to get the housing market moving

  • Posted by Labercrombie May 05, 2020 at 21:01

    This is a valid post and an excellent idea to help get the housing market going again. It would be helpful if the government could consider and get legislation in place as and when the lockdown restrictions are relaxed.

  • Posted by MrsAytsy May 06, 2020 at 21:40

    If a waive of LBTT happens, those of us who have been stressed, worried and inconvenienced by delays and not knowing what is happening and when, shouldn’t ‘miss out’ on this just because we completed before a waive came into force. Indeed we are the ones that should be helped out.

  • Posted by Dugald May 08, 2020 at 11:07

    Agreed.

  • Posted by Sedling May 10, 2020 at 13:09

    Because of the slump in the housing market we will very likely incur the additional dwelling supplement - an extension of the time limit would be very welcome
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