With spring now upon us, we can say hello to longer days, blooming flowers and warmer temperatures. But that’s not all – Scotland’s residential property market is thriving.
With England and Northern Ireland having experienced changes to Stamp Duty thresholds from 1 April 2025, it’s the ideal time to set out the nuances of Scottish property and what to consider when buying.
Scotland operates under a different system known as Land and Buildings Transaction Tax (LBTT). It’s tailored to Scotland’s unique market conditions and helps ensure a smoother buying process. The LBTT thresholds will remain unchanged in Scotland, providing a predictable landscape for both buyers and sellers.
Felipe Ferreira, Sales Director at Barratt Homes and David Wilson Homes North Scotland said: “The Scottish system differs from the rest of the UK in many ways, with distinct procedures and terminology. With recent Stamp Duty changes in England and Northern Ireland, we wanted to give homebuyers north of the border some recommendations on how to navigate the current Scottish market. So, we’ve leaned on the experts to provide valuable insight – whether you’re a first-time buyer or experienced seller.”
Barratt Homes Scotland has teamed up with property advisors Savills to share ten tips to consider when buying in Scotland.
Faisal Choudhry, Savills Head of Residential Research in Scotland, said:
- Get Your Finances in Order: Before you start your property search, ensure you have a clear understanding of your budget. Speak to a mortgage advisor to get pre-approved for a loan, giving you a competitive edge when making offers. With the market heating up, desirable properties can be snapped up in days. Make sure you have all your documents in order and be ready to make swift decisions when you find the right property.
- Home Report and/or Survey: Despite the availability of a Home Report, which includes a Single Survey, Mortgage Valuation and Energy Performance Certificate, you may still wish to have an independent report on the property you are considering buying, and your lender may require one. This can be a simple mortgage valuation report, a more detailed survey report or a comprehensive building survey.
- Pricing: Most properties in Scotland are marketed at ‘offers over’ a certain amount. This generally means that the seller is hoping to secure a sale price above the amount quoted. Be prepared to engage in competitive bidding, especially in popular areas and during the spring surge. New build properties are normally ‘fixed price’, making budgeting more straightforward.
- LBTT: Don’t forget to budget for this. The charge is proportionate to the actual price of the property, and currently there is nothing to pay on the first £145,000 (with first time buyers exempt up to £175,000) but rises to 12% for properties over £750,000. Savills LBTT calculator
- Notes of Interest: Registering a Note of Interest does not commit you to purchase; it merely indicates your desire to be updated on property developments, such as when offers are due. Your solicitor might find out how many Notes of Interest exist for a property, but the specifics of offers will not be disclosed. Before submitting an offer, solicitors are required to conduct anti-money laundering checks on your behalf.
- Making an Offer: In Scotland, only a solicitor can submit a formal offer for a property. Verbal agreements are non-binding and ineffective. Your solicitor will prepare a formal document outlining price, date of entry, included items and standard legal terms. It may include conditions and usually has a time limit for acceptance. It allows your solicitor to verify legal details, such as title deeds and relevant planning applications.
- Deposit: For more expensive properties, a deposit, usually 10% of the purchase price, may be required as an indication of your good intent. It is generally payable within 14 days of the contract being concluded and held on a joint account. The deposit may or may not be refundable if the sale does not proceed. Your solicitor will advise you on the specifics. For new build properties, a deposit is required to reserve the property and the timescale of the transaction is prescribed. For example, Barratt and David Wilson Homes take 2% at missives and the rest on completion.
- Closing Date: Unlike other parts of the UK, properties in Scotland may have a closing date for offers. This is a set date and time by which all interested parties must submit their best and final offers. It’s a nerve-wracking but efficient way to handle multiple bids and can lead to some properties selling well above the asking price.
- Acceptance and Missives: If your offer is accepted, the seller’s solicitor will send a formal acceptance, possibly with qualifications. Your solicitor will discuss and negotiate these on your behalf. The offer, acceptance, and any related letters form the missives. When the final acceptance is issued, missives are concluded, creating a legally binding contract. Your solicitor will inform you when this happens.
- Settlement: Settlement occurs on the contract’s specified entry date. The purchase price is paid to the seller’s solicitor in exchange for the disposition, title deeds, other documentation and property keys. Ensure your funding is in place to avoid interest charges until full payment. Before settlement, your solicitor will prepare a State for Settlement detailing the purchase price and outlays, including Land and Buildings Transaction Tax.
