The great news for us in Scotland, is that the Scottish Government have indicated that Scottish branches of Estate Agents can open up in Phase 2. Property visits and viewings will be permitted, rather than relying on virtual tours and photos.
The 18th June is the tentatively proposed date. However, with Nicola’s eye on a possible 2nd infection spike after the last weekend’s easing of rules, and a flurry of beach and mountain climbing trips, who knows if we will be rejoicing.
In the meantime, the property market has not lain totally dormant. ESPC research suggests a steady increase of search activity online for property to buy, and estate agents reporting a good supply of property waiting to hit the market after lockdown eases.
This continuing trend in engagement would suggest at least a healthy bounce as pent up need is finally released! The advice from all Estate Agents now is to prepare, whether selling or buying.
Murrayfield family house. Image courtesy of Clancys via ESPC
Want to Sell?
Firstly, contact your solicitor. They will hold the title deeds to the property, and hopefully also the planning consent for any building works you may have done. If not, this is the time to get retrospective permission.
Your solicitor will also check for any complications with the sale and organise a Home Report. The report gives potential buyers information about the property for sale. It consists of a survey, a questionnaire, and an energy report.
A Home Report costs between £585 – £820 depending on the size of property, paid for by the seller. After a period of inactivity, surveyors are likely to be very busy catching up with a backlog of requested reports, now that they can carry out inspections.
Your accountant would be a good next port of call. Taxation is Scotland is devolved from the UK government, so make sure you know how much you may have to pay and when.
On 11th May, the Scottish Government extended the refund period on the Additional Dwelling Supplement (ADS). ADS is a charge that applies on a second property purchase but is refunded if you sell one of the homes within an 18 month period. Individuals now have 27 months to sell their previous main residence.
Lastly, why not take this time to consider if it’s worth doing any repairs or redecoration? Your Estate Agent will be can advise you if a lick of paint will help with a sale. Have a look around your home and check for dripping taps or gutters, carpets that need securing down, scuffs, and flaky paintwork. Not everyone is looking for a project property.
Penthouse at Donaldson’s. Image courtesy of Rettie
Want to Buy in Scotland?
Homes in Scotland are sold either at a fixed price, or through a ‘blind bidding’ system. Make sure you have spoken to your Solicitor and are aware of how this works.
The system protects the buyer and seller in the sale, but it can be incredibly frustrating when you are deciding what to offer the seller, and you know there are other notes of interest! However, if you are relocating from England, you may well have an advantage for the next few weeks, being further down the chain, and knowing what you can afford.
Speak to your accountant about Land and buildings Transaction Tax (LBTT). In Scotland, you are liable to pay LBTT when you buy a residential property or piece of land costing more than £145k. The rates differ as the purchase price increases, to a hefty 12% on prices over £750k.
Happily there is also First-time buyer relief, making it a little easier for those trying to get on the housing ladder. Make sure you have factored all this in before your solicitor puts in your offer.
Housing Market in Scotland
The housing market can move pretty quickly in Scotland when there is decent demand. A house can go on the market, a closing date set, offer accepted, and be yours within 6 weeks.
If you have come through the ordeal of the offers over system successfully, the seller will have agreed to accept your offer. This qualified acceptance is then negotiated in letters between solicitors, called missives. Once missives are accepted by both parties, they are binding. If either party tries to pull out of the deal after this period, they could be liable for thousands of pounds of damages. Gazumping isn’t therefore an issue, but you need to have all your ducks in a row and be sure in your mind.
So, the word on the lips of all the Edinburgh Estate Agents is it’s all to play for. Get yourself ready whether buying or selling, because the next few months look like it could be frantic. How long this optimism will last is anyone’s guess.
I suspect the market outside of the Edinburgh bubble may look a little different – save for the rural properties that have leapt in popularity now that commuting isn’t such an issue. It’s a great excuse to have a blog on cottages (or castles) in East Lothian.
Seton Castle. Image courtesy of Savills via rightmove.co.uk