A survey of ESPC members reveals growing concern that the LBTT relief threshold of £175,000 is unrepresentative of current property prices, particularly in Edinburgh, East Lothian and Midlothian. With the average first-time buyer property in Edinburgh now costing £253,424, new buyers face an LBTT bill of £1,671 – just £600 less than non first-time buyers.

According to Registers of Scotland data, in Edinburgh alone, just 5% of properties sold in 2024 qualified for Band 0, down from 32% in 2015.

ESPC is calling for a zonal pricing model for first-time buyer relief – one that accounts for regional disparities in average property values. It is calling for Edinburgh’s threshold to increase to £250,000, with tailored increases in other high-cost areas like East Lothian, and Midlothian. Other areas could withstand the threshold remaining at £175,000.

Paul HIlton, chief executive of ESPC said: “The current LBTT threshold is simply not aligned with the market. First-time buyers are already stretched to cover deposits and legal costs. This additional tax burden is now making home ownership even more inaccessible.

“Introducing a zonal pricing model based on regional disparities of property prices is a practical, evidence-based proposal that reflects the diversity of Scotland’s housing market. A one-size-fits-all approach is no longer fit for purpose.”

Mr Hilton continued: “With Scotland in the midst of a national housing emergency, the need for targeted policy intervention has never been more urgent.

“We speak on behalf of all our members in urging policymakers to modernise the LBTT system as a matter of priority, starting with immediate revisions to the first-time buyer threshold.”