Scottish Housing Market Review Q3 2025
Quarterly bulletin collating a range of previously published statistics on the latest trends in the Scottish housing market.
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3. Residential Land and Buildings Transaction Tax
The provisional estimate for Residential Land and Buildings Transaction Tax (LBTT) revenue – excluding the Additional Dwelling Supplement (ADS) – between April and August 2025 was £223.6m. This represents a 4.7% increase compared to the same period in 2024, and a 19.4% increase on 2023. A combination of sales growth (see Chart 1.2) and rising house prices (see Chart 2.1) have contributed to higher tax revenue.
Source: Revenue Scotland
Chart 3.2 plots the percentage of total residential returns received where ADS was declared due on a monthly basis between 2022 and 2025. ADS was first introduced in 2016, with the tax rate initially set at 3%, before being increased to 4% in January 2019, to 6% in December 2022 and to 8% in December 2024. The share of residential returns received where ADS was declared due has trended lower in recent years, and the 19.0% recorded in August 2025 was (other than April and May 2020 when activity was particularly affected by the Covid-19 pandemic) the lowest share since April and May 2016, immediately after the introduction of ADS.
Source: Revenue Scotland
Contact
Email: Jake.Forsyth@gov.scot