A Tayside property expert has claimed the impending independence referendum is resulting in some investors “holding back”.
Lindsay Darroch, the head of property at Blackadders, said the uncertainty of the result of the referendum is having an impact on the property market.
He said: “I have now come across a number of examples of potential property investors, both large and small, who are holding back investing in Scottish property due to the uncertainty of the referendum.
“The main concern appears to be what impact there will be on bank lending should people vote in favour of independence.
“It is thought that this will cause the banks to reduce the amount of funds they are prepared to lend in the Scottish property market never mind the question of what currency will be in use and this will have a damaging impact on house prices in general.
“This is the first time I have been aware of this sentiment and it may curtail the surge of buy-to-let property investors that I have been expecting.”
Mr Darroch added that he was disappointed to read about Organisation for Economic Co-operation and Development concerns about a property bubble in the UK housing market.
He stated the high price rises were restricted to London and the South East of England and said it would be “dangerous” for the Government or the Bank of England to restrict mortgage lending when there was high growth in some parts of Britain and stagnation in others.
He suggested a way to address the imbalance would be for the Government to give relief from stamp duty in certain areas.
“I remember a time when, in a bid to stimulate the housing market, the Government gave relief from stamp duty to certain postcode areas,” he said.
“I would suggest that the Government brings in a premium rate of stamp duty for certain postcode areas on a temporary basis to control the housing market.
“I would also suggest that any extra funds are ring-fenced and used to support the property market, especially in more deprived areas.”