Scottish property market ends 2021 roller coaster with better-than-expected growth

DJ Alexander, who is now part of the Lomond rental and estate agency group following this week’s merger deal, believes the real estate market – comprising buyers, tenants, landlords and investors – had a period of stronger growth this year than many might have hoped for.

The Edinburgh-based company said the housing market has proven to be “extraordinarily robust” with parts of Scotland, such as the Scottish capital, experiencing areas of double-digit sales growth and prices that “even l most optimistic real estate agent would have had a hard time predicting.

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Demand exceeded supply and held steady throughout the year, even as relief from the Land and Real Estate Transactions Tax (LBTT) ended in March, indicating that the reduction in the Tax payable was not the main driver of the housing market.

David Alexander: “The past year has been both surprising and remarkable. Photo: Laurence Winram Photography

According to the latest LBTT statistics, which cover the period up to November, the value of residential sales revenue for the Scottish Government has increased 92.4% year-on-year. Taxes collected increased by £ 178million from £ 192.7million in 2020 to £ 370.7million in the 11 months to November 2021.

Results for those paying the Supplementary Housing Supplement (ADS), which includes homeowners, real estate investors and second home owners, rose 79.2% over the same period, increasing to $ 66.9 million. from £ 84.5million in 2020 to £ 151.4million. last month.

David Alexander, Managing Director of DJ Alexander Scotland, said: “The past year has been both surprising and remarkable. No one believed that the residential market would continue to be so dynamic at a time when many people must have real concerns about their future jobs and incomes. Yet we have seen record increases in house prices and increased demand.

“The latest LBTT statistics show how important this demand has been. The last six months (June to November) of revenue raised were the highest on record since the tax was introduced. This reveals the scale, degree and character of this real estate boom.

He added: ‘The fact that these record numbers are also reflected in the statistics of those paying the additional housing supplement indicates that it is not just homeowners who see Scotland as a great place to buy.

“Homeowners, investors and second home owners have contributed £ 94million to government coffers in the past six months alone, with the highest ever monthly figure of £ 19million being raised in November.

“What this tells us is that property has been and continues to be a vital part of the pandemic.

“People needed a place to stay that was important to them and that contributed to their well-being. It was as if people suddenly remembered that there are few things more important than where you live.

On Monday, it emerged that Lomond Group was acquiring DJ Alexander, one of the best-known names in the industry, for an undisclosed fee. This move was supported by Lomond’s private equity partner, LDC, the private equity arm of Lloyds Banking Group.

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