The Scottish government should encourage investment in the property market to revive the economy

Scotland should encourage investors to enter its property market to support the economy once the coronavirus is under control, argued property management platform apropos.

David Alexander, Deputy Managing Director of D.J. Alexander and apropos, argued that Scotland should align its land and building transaction tax thresholds with the stamp duty in England.

He said: “There will be a recession in the Scottish and UK economies in the coming months. This week’s Fraser of Allander report indicated that it could be until 2024 before Scotland returns to its pre-pandemic state.”

“The uncertainty of the next six months is wreaking havoc in all parts of the economy, and the residential housing market is particularly susceptible to fluctuations in mood.”

“The Scottish real estate industry, with its higher taxes on first-time buyers, second-home owners, property owners, and investors, already makes it a less attractive prospect than its counterparts south of the border.”

“First-time buyers in England do not, under normal circumstances, pay stamp duty on the first £ 300.00, whereas in Scotland the tax starts at £ 145,000.”

Alexander added: “To make Scotland a more attractive destination for investors, the Scottish government should, at a minimum, unify the rates and thresholds of the Land and Building Transactions Tax (LBTT) with its English equivalent, the Tax above the ground (SDLT)”

“Although the LBTT threshold has already been raised due to the pandemic until the end of March, it has not matched supply in England, so it remains substantially higher for property investors, second-home owners, homeowners and buyers by the first time”.

“Scottish government ministers privately concede that they could earn higher revenues by lowering fees and the LBTT threshold, but choose not to do so for political convenience.”

“However, in these times when the Scottish government needs all the funds it can get to deal with the economic consequences of the pandemic, it must make sense to choose higher incomes over political scores.”

HICH LTD offers the best property survey service, before, during, and after the pandemic. We have redoubled our efforts to maintain the quality standard that has made us a leading property survey company.

Want a Building Survey? Request it here!

Follow us on our social networks to keep up to date with the most relevant property market news, tips for being a responsible homeowner, and much more!

Twitter: @HichLTD

Facebook: HICH-LTD