Rettie Property Research Services

As we have passed the close of the financial year, it is time to take our annual delve into the performance of Scotland's Land & Buildings Transaction Tax (LBTT), in order to see how returns and receipts have performed across 2023/24 compared with previous years.

The East Lothian housing market is flourishing, boasting the second highest average house price in Scotland, trailing only behind Edinburgh. This growth, with a notable 2.8% increase in the past year, underscores the area’s appeal with its diverse lifestyle options and excellent transport links to both Edinburgh and London. We discuss in this briefing how these unique lifestyle opportunities have been pivotal in sustaining demand in the local market.

The Perth and Kinross property market has remained resilient through the recent challenging market conditions. The latest average house price figure for Perth and Kinross in Q1 2024 is up 2.3% on the same period last year, against a 0.6% increase seen nationally.

Prime market stays strong … During 2023, the prime £1m+ market withstood the challenging headwinds better than the overall market, with the number of sales slightly increasing on the 2022 total to a new record annual high of 506 sales.

Over a quarter (28%) of households in Scotland face one or more forms of housing need, according to a new report.

This time last year, the housing market and wider economy had been thrown into turmoil by the UK Government’s Autumn Mini-Budget, with the mortgage payment on the average Scottish house purchase increasing by almost 60%.

As East Lothian locals know, the area is well known for having its own unique microclimate. Rain may be settled over the capital, but a short drive east will often reveal blue skies and a warm breeze. This happy distinction is also true of the East Lothian housing market.

Scotland's housing market's performance has been dominated by ‘events’ over the past 15 years or so, beginning with the collapse of Northern Rock at the end of 2007, which signalled the end of the mortgage credit boom across the UK.

Despite the summer season, the Scottish BTR sector is experiencing a somewhat gloomy 2023, but there is still hope for an Indian summer.

A lot can happen in 9 months … It really is just 9 months since Kwasi Kwarteng introduced his mini-budget in September 2022. The resulting money market panic that seeped into the wider economy, including the housing market, is, of course, a matter of great regret for many.

Did you know? The average house price in the West End* in 2022 was £258,000, 28% higher than the Glasgow average of just over £200,000. *Postcode districts of G3, G11, G12, G13, G14 and G20

Our recent review of Scotland's Land & Buildings Transaction Tax (LBTT) shows that, in 2022/23, LBTT revenue reached a record high in Scotland, driven by a relatively strong sales market and rising prices.