Navigating Scotland’s Property Market: What Are the Main Concerns?
By Carl Warden, Head of Estate Agency
The property market in Scotland continues to show strength, with consistent sales, healthy interest levels, and improved availability of homes. These factors are encouraging signs for buyers and sellers alike. However, while there are many positives to take from the current landscape, certain concerns continue to pose challenges, some more frustrating than others.
High Transaction Costs: A Burden on Buyers
One of the biggest financial hurdles for buyers in Scotland is the sheer cost of transactions. While property prices themselves fluctuate based on demand and location, buyers must also contend with additional financial burdens such as the Land and Buildings Transaction Tax (LBTT) and the Additional Dwelling Supplement (ADS). The latter, sitting at a significant 8%, applies when purchasing a second home in Scotland, making it a considerable factor for those looking to invest or move before selling their existing property.
These costs, combined with legal and agency fees, can make property transactions an expensive undertaking, one that requires careful financial planning and consideration from buyers.
The Reality of Chains in Scotland’s Market
Perhaps the most frustrating challenge within Scotland’s property market is the issue of chains. A situation that occurs when multiple transactions depend on one another to progress.
While some might associate chain selling more with the English market, it is equally prevalent in Scotland, and its effects can be felt across the housing landscape. If you’ve ever seen listings marked “unexpectedly back to the market” or “offer under consideration”, chances are a chain has fallen apart, leaving a seller and prospective buyer scrambling to find new options.
Why Do Chains Form?
Chains often form because buyers delay marketing their own homes until they find a property they want to purchase. This creates a frustrating expectation: sellers, who have already committed to marketing their homes, are pressured to pause their selling efforts and wait for the buyer’s own situation to resolve.
The chain extends until a cash buyer, first-time purchaser, or a fully ready buyer steps in, allowing transactions to complete. However, in many cases, patience wears thin, and expectations go unmet. When one party withdraws, the entire chain collapses, forcing buyers and sellers back to square one.
Navigating a Changing Market
Scotland’s property market continues to shift, and these challenges only reinforce the need for expert guidance. To avoid the pitfalls of chains, sellers should consider proactive marketing strategies, while buyers should carefully evaluate their position before making offers.
That’s where Bell Ingram comes in. With experienced, local agents who understand the complexities of Scotland’s market, we offer clear guidance and expert negotiation support to ensure a smoother, more successful property journey.
If you’re thinking of buying or selling, having access to the right advice at the right time makes all the difference. Get in touch today, and let us help you take the next step with confidence.