The lettings and estate agency said that Scottish Government revenues from Land and Buildings Transaction Tax (LBTT) totalled £619.6m in the 12 months to December 2023.

This is slightly lower than 2022 when £623.1m was raised but is £224m higher than the pre-pandemic figure of £395.6m in 2019.

Of the £619.6m taxes raised £196.9m is from the additional dwelling supplement (ADS) which is charged on second homes and properties purchased by landlords and property investors to rent. This is 31.8% of the total raised and is £44m higher than 2022 which was 24.5% of the previous years’ total. However, this is down from the 40.6% of revenue raised in the pre-pandemic year of 2019 when £114.2m of the £281.4m raised came from ADS.

Almost all the taxes raised arose from properties sold for more than £325,001. The 16,430 transactions above this threshold raised £350.5m which is 82.9% of the total £422.7m raised in LBTT (this is the figure for residential sales with the ADS figures removed). This means that the average tax levied per transaction was £21,332.

David Alexander, chief executive officer of DJ Alexander Scotland, commented: “Since the pandemic the price of properties has risen substantially in Scotland.

“Since March 2020 until September 2023 (the latest date for which there are statistics) average house prices across Scotland have risen £41,492 to reach £192,117 which is an increase of 27.5% in three and a half years which is an extraordinary rate of growth.

“The result is that taxes charged on property sales are now substantially higher than even three and a half years ago. But increasingly the bulk of this income is dependent on transactions for properties 2worth more than £325,0001. Almost 90% of total revenues were generated from a few thousand buyers who contributed, on average, over £20,000 to buy a home in Scotland.”

Mr Alexander continued: “Were these buyers to purchase a home in England then they would not start to pay the 10% tax until the value of their property was greater than £925,000.

“In Scotland, a home costing £325,001 is the starting point for the 10% levy. Furthermore, 12% is charged on properties selling for more than £750,000 whereas south of the Border this level does not kick in until prices reach £1.5m. It is clear that Scottish homebuyers are being charged considerably more in tax for the privilege of owning a home north of the Border.

“What is of further interest is the substantial increase in purchases by investors, landlords and second homeowners. Given the punitively high taxation paid by this group of buyers it is testament to their resilience and belief in the Scottish market that they are buying properties in ever larger numbers because they want to invest in the private rented sector, or they wish to have a second home here.

“Either way they are contributing substantial levels of tax to the Scottish purse and should be encouraged to invest more in the future.”

Mr Alexander continued: “At its heart LBTT, like stamp duty land tax (SDLT) in England, is a simple cash grab for governments. You can’t hide a home, so buyers simply have to pay up or move to somewhere where the purchase costs are not quite as punitive.”

Mr Alexander concluded: “If Scotland is to be seen as a progressive country wanting to attract the brightest and the best then we must ensure we have a property tax regime which is at least as fair and as competitive as our nearest neighbour.

“At present we risk putting off buyers, investors, landlords, and second homeowners with a much more punitive tax take. We must have a tax system which is more broadly based and encourages homeownership, at the same time as attracting investment in the private rented sector. That this hasn’t happened yet is evidence of the attractiveness of Scotland as a place to live and invest.

“But it is important to understand that this can change if taxes keep rising and costs become insurmountable. We should always be aware that those with more money always have the option of moving elsewhere and it would be a mistake to drive these individuals and companies away with excessive taxation.”