During the first quarter of the year (Q1 2025 January – March) the Galbraith residential team in Fife handled the sale of 20 percent more properties compared to the previous quarter and conducted 79 property viewings with prospective purchasers.

Dominic Wedderburn, head of residential sales for Galbraith in the firm’s Cupar office, said:

“Our latest figures are encouraging, and we have a strong pipeline of properties being prepared for market ahead of the summer selling period. The favourable sunny weather has encouraged sellers to get organised early and has allowed them to present their properties and gardens in the best possible light. 

“However, the Additional Dwelling Supplement (ADS) – having increased to eight percent in the latest budget – has impacted the entire residential market across Fife. The ADS was a measure introduced by the Scottish Government to try and address the impact of second home buyers on the availability and affordability of local housing in areas like the East Neuk of Fife, but it has had a huge impact on sales in general across the whole of the Fife market.

“ADS is a punitive financial burden for those taking out bridging loans or buying with cash to finance their next home purchase instead of selling. Based on a purchase price of £700,000 a buyer purchasing without selling their principal residence would have to pay £56,000 in addition to the required LBTT (Land and Buildings Transaction Tax) of £43,350.  Whilst the purchaser would be able to claim back the ADS paid after they have sold their main residence (within a time frame), it is a significant sum of money for a buyer to produce. 

“Due to the cost of ADS (in addition to the cost of bridging finance) most sales agreed are subject to sale and so we are now operating in a selling chain process, as in England, with properties remaining under offer for longer periods of time with unfortunately some last-minute fall throughs, devasting for all concerned. I would encourage the Scottish Government to review this measure as not only is it a big burden for the property market, but it is also having a knock-on effect on the rest of the local economy.  Abolishing ADS on these transactions would help grease the cogs of the Scottish property market resulting in more transactions and higher tax revenue for the Scottish Government through LBTT and allow people to move in a smoother fashion.

“That said, the more positive economic outlook – with inflation having eased from its peak and lower interest rates – has built confidence in the Fife property market. When properties are selling, they are selling well under negotiation when accurately priced, and prices achieved this year have been closely aligned to the asking price.”

 

Recently sold through Galbraith in Fife:

  • Ramornie Mill House in Cupar is a charming Georgian farmhouse with beautiful grounds, paddock and useful outbuildings. It was on sale at offers over £695,000 and after generating a lot of interest, sold well for an agreed offer over the asking price. 

Currently for sale through Galbraith in Fife:

  • Northbank Farm in St. Andrews, a traditional period farmhouse set in 77 acres of high quality arable farmland is for sale at offers over £1,380,000. It comes with various outbuildings, a paddock and woodland surrounding the farmhouse. The property presents the opportunity to operate a small farm, equestrian business or simply enjoy a country lifestyle.
  • Wester Dron Farmhouse in Dairsie, Cupar is a renovated farmhouse with steading and outbuildings for sale at offers over £775,000. The property is set in over five acres of land with a paddock and meadow area and lovely countryside views.