The Scottish Property Federation (SPF) has welcomed the Scottish Government’s decision to exempt transactions of six or more homes from the additional LBTT surcharge.

Published by the Scottish Parliament last month, the Land and Buildings Transaction Tax (LBTT) (Amendment) (Scotland) Bill proposed a supplement of three per cent of the total price of the property for all relevant transactions above £40,000, and will be paid in addition to the current LBTT rates.

In its written and oral evidence to Holyrood’s finance committee, the SPF advocated an exemption for larger scale transactions in order to support PRS investors, SME housebuilders, and property entrepreneurs.

The committee recommended the exemption, which was yesterday accepted by the Scottish Government.

Finance secretary John Swinney said the aim of the bill was to maximise the opportunities for first-time buyers to get a foot on the property ladder in Scotland.

He told MSPs: “I certainly recognise the need to balance support for home ownership and first-time buyers without discouraging significant and beneficial investment in residential property for rent.

“I hope that the specific relief that I have set out in relation to the bulk purchase of properties gives some further clarity to the market place and can enable commitments to be made with the assurance I have given.”

David Melhuish, director of the Scottish Property Federation, added: “We believe that there should be an exemption set for larger scale transactions of six or more properties, and we are pleased that the Scottish Government has listened to our concerns and brought in the exemption.

“Significant large scale investment by institutional funds has the potential to really help to boost housing supply in Scotland, and this move will particularly help the emerging build to rent sector. Without these recommendations, SME house-builders who were devastated by the financial crash, would have been severely constrained in attracting finance and investment to take forward future development projects.”