New Property Tax Will Trigger Surge In Demand For Commuter Belt Properties.
The new Land and Building Transaction Tax announced by the Scottish Government is set to trigger a boom in commuter belt properties, according to property consultants CKD Galbraith.
The firm, which has offices throughout Scotland, says that following the introduction of LBTT next year, the tax differential between high quality homes in main cities and comparable properties within commuting distance will be so significant that it is likely to cause a major shift in demand.
In some cases, properties located in commuting belts of major cities could be paying up to £50,000 less than those within city boundaries.
Bob Cherry, partner with CKD Galbraith, said: “There is obviously a significant difference in the capital value of similar sized houses in our main cities and their respective commuter belts. That said, the differentials that will be caused by LBTT are of such significance at the higher end of the property market, it will become much more of factor for house buyers. We fully expect an upsurge in the demand for commuter belt properties.”
The Beeches at Kilmaurs, Ayrshire. A five-bed 3000sq ft at offers over £400,000
Kilmaurs is 22 miles from Glasgow. Regular train service- season ticket is £1500
Fairwinds, 12 Davieland Road, Whitecraigs. Five-bed and about 3000sq ft. Offers over £725,000
Current stamp duty
The Beeches - £12,000
Fairwinds - £29,000
The Beeches - £17,300
Fairwinds - £49800 on Fairwinds - difference of £32500
Differential - £32,500
Tax differential = £15500 (the cost of a new car or 10 years of railway season tickets.)