Another measure to try to restrict the buy to let market was announced yesterday by John Swinney, when he announced a 3% increase in Land and Buildings Transaction Tax (LBTT) from April 2016 in Scotland, to bring the Scottish market into line with the changes recently announced in Westminster.
So if you are preparing yourself for a summer buy to let purchase then it may be worth looking at your options for bringing this forward. Our understanding is that a property bought for £145 000 would not attract any interest up to the end of March, but from April would cost an additional £4350 in LBTT a significant sum to fork out in advance.
Overall with the property market on the rise in Edinburgh, those with a long term approach to their property investments may not look at this as such a problem, with inflation likely to cover the cost within the first year quite easily, and the capital increase in the property value over 10 – 15 years being significantly worth the initial outlay. However it certainly puts another financial obstacle in front of the aspiring Landlord when getting a foothold in the property market.
If you are thinking of buying a property in Edinburgh or surrounding areas and would like some advice then contact us today.