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Law firm dismisses effect of VAT hike on mortgage applications
The upcoming increase in VAT is unlikely to have a significant impact on the number of mortgage applicants choosing to buy a new house over the next few months, according to Edinburgh law firm Russel & Aitken.
Dianne Paterson, property partner at the firm, explained that the levy will only affect a small number of the fees associated with the purchase of a home.
She said: “The increase in price is not significant enough within the total cost of a property to have any real impact on the housing market.
She also rejected the idea that Stamp Duty changes would change seller sentiment.
Paterson added: “It is unlikely that the increase in Stamp Duty will have much impact on the average market, as it only affects properties worth over £1 million.”
A recent study by Lloyds TSB Scotland showed year-on-year, house prices have risen 4.6% in Scotland.