A slowdown in house sales at the middle and upper end of the East Lothian housing market is set to have an impact on all of Scotland’s property market, East Lothian candidate Rachael Hamilton has warned.
The Scottish Government has introduced a new Land and Buildings Transaction Tax (LBTT), to replace Stamp Duty, which saw a tax cut for lower value properties. However, a new 10% rate is applied to properties over £325,000 meaning purchasers of detached family homes in East Lothian will face a tax rise.
Experts have already told the Scottish Parliament that buyers of properties in higher bands are deferring the decision to move because of the SNP’s new land and buildings transaction tax (LBTT) and that this will have a negative impact on the whole of the market.
East Lothian candidate for the Scottish Conservatives, Rachael Hamilton, has warned that this move will disproportionately affect families in East Lothian and stifle the whole of the property market.
East Lothian candidate, Rachael Hamilton said: “The Scottish Government has been warned that having punishing rates at the upper end of the property market would result in a slowdown.
“In East Lothian, where average family homes are now being hit with an increased tax bill, things are being made harder for everyone else.
“Not only does the SNP’s new property tax punish aspiration and make it harder for families in East Lothian to buy a house sufficient for their needs.
“It’s now beginning to impact further down the chain and of course, if the housing market slows down, tax revenues fall drastically, meaning less money for services.
Rachael added: “The Scottish Government should heed the advice of experts and look at ways of making it easier for those in the middle of the market to secure the right home for their family.”