Stamp Duty for Scottish residential and non-residential property sales will be replaced by Land and Buildings Transaction Tax (LBTT), from April 2015. LBTT will favour residential sales below £325,000 under the proposed structure (see Graph 3).

Click image below to enlarge

With the Referendum now behind us, the Scottish market had been poised for a healthy recovery. However this relies on activity at both ends of the market, not just from first time buyers, and the new tax will have a negative impact at the higher end. As has been the case with changes to the taxation system in the past, we expect a short-term lull while the market adjusts to the impacts of LBTT for buyers and sellers alike.

Compared with other parts of the UK, house prices in Scotland will remain comparatively low. However, those who need to live in the residential hubs of Edinburgh, Aberdeen and Glasgow, where averages prices are much higher, may be deterred from moving.

In view of this we anticipate increased prime market activity up until the spring of 2015, whereby buyers are likely to make quick and committed decisions before the new tax comes into force in April.

Taken from:
Spotlight: Aberdeen Area Residential Market