AN ANNUAL fall in home-mover lending figures highlights the negative impact the Land and Buildings Transaction Tax is having on potential home buyers, according to industry body Homes for Scotland.

Statistics released by the Council of Mortgage of Lenders (CML) revealed that the amount borrowed by home buyers stood at £1.8 billion in the first quarter of 2017, down 15 per cent quarter-on-quarter and five per cent year-on-year.

The 14,300 loans awarded during the period was down 14 per cent compared to the previous quarter and six per cent on the first quarter 2016.

Likewise, the £1bn borrowed by Scots looking to move home was down 19 per cent quarter-on-quarter and six per cent compared to a year ago. This totalled 6,700 loans, down 19 per cent quarter-on-quarter and eight per cent compared to the same quarter in 2016.

While the £810m borrowed by first-time buyers was down 10 per cent on the fourth quarter, the figure was up 25 per cent on the first quarter last year. This totalled 7,600 loans, down eight per cent quarter-on-quarter but up 23 per cent year-on-year.

Nicola Barclay, chief executive of Homes for Scotland, which represents the country’s housebuilders, said: “The figures would appear to underline our concerns regarding the impact of the Land and Buildings Transaction Tax with feedback from our members continuing to suggest that potential buyers of homes in higher bands are deferring the decision to move.”