FREE Online Valuation in just 60 seconds
Click here
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.
http://www.bbc.co.uk/news/uk-scotland-scotland-politics-35113952
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.