News

We attended a NAEA meeting today in Dundee for a regulatory update. As expected all agents North of the Border are experiencing difficulty at the top end of the market as a result of Land and Buildings Transaction Tax (the old stamp duty). Edinburgh has been hit hard with its increased values. The feeling is, that having changed twice last year, it is unlikely to change again soon. Short of the Scottish Government starting to realise that they are not getting the revenue they had expected, I feel we are stuck with it for now.
Ironically reducing the house price which seems to be the answer for most, does not make a significant difference  unless you can get under the £325k threshold, which simply is not an option for most.
I can see a trend developing where the vendor makes a contribution to the buyer to help with the tax. Simply reducing the house price does not help raise the extra money for the tax. You don’t get a mortgage for a tax bill!
Another new trend I see developing, largely due to the tax, but also reduced mortgage lending and lack of increase in salaries, is buyers now expect property to be in perfect condition. Gone are the days when the buyer “puts their own stamp on it” or negotiates a deal to do the work themselves. Again the additional cost of buying a home does not leave a client with the extra capital to “do up” a property and mortgage lending being so tight, they rarely get as much as they would have wished for.
My advice would be make your home as perfect as possible, to facilitate the purchaser. Walk in sit down property is selling the fastest by a mile.   I would also give some consideration to the costs of purchase, it is more important to the buyer than the cost of the house and can be significantly more.  
Bill Reid BEM BA NAEA DipPFS