Slump in property deals

THE value of commercial property deals in Scotland has slumped to its lowest level for more than six years following a 40 per cent crash in the first quarter of 2012.

Sales values plunged to just £355 million, with the number of transactions dropping by 20 per cent, one of the worst performances on record according to the Scottish Property Federation (SPF).

Retail and office space rank among the hardest-hit sectors, according to the SPF’s analysis of official data from Registers of Scotland.

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The figures give further ammunition to industry campaigners fighting Scottish Government proposals to raise rates on empty properties from next April.

The so-called “tax on failure” is being scrutinised by the Scottish Parliament’s local government and regeneration committee.

SPF director David Melhuish said: “This is not a time for the Scottish Government to be thinking of adding to the woe in the sector. The no-growth scenario that we have got is sapping confidence from the market.”

Separate figures from the Investment Property Databank show that overall commercial values in Scotland remain 35 per cent below their pre-recession peak in June 2007, worse the UK average of 31 per cent.