The Land and Buildings Transaction Tax (LBTT), introduced earlier this year to help first time buyers get a foothold on the property ladder, has led to an 11 per cent boost in sales.

The tax has also contributed towards a 7.8 per cent drop in house prices, mostly at the higher end of the property ladder.

According to the house index released this week by UK estate and letting agency YourMove, a total of 104,344 home sales were completed in the first year of the new tax. The average house price in Scotland now sitting at around £170,667 compared to the £185,080 in April of 2015.

Christine Campbell, YourMove managing director in Scotland, said: “These figures confirm that lower purchase taxes for property can significantly boost activity in the housing market, while also making it more affordable for first-time buyers to get a foot on the ladder.”

She added: “The tax has particularly hit homes at the top of the market, as these properties have become more expensive to buy after the introduction of LBTT. So, while there has been an upswing in sales, it has come at a cost for some.”

House prices in Aberdeen, East Lothian and West Dunbartonshire have seen significant drops in the average sale price.

However, areas such as Midlothian and Falkirk saw house sale prices increase. Midlothian saw an increase of around 4.3 per cent in comparison to the previous year and Falkirk went up by 3.8 per cent.

The figures released also showed that the most expensive place in Scotland to buy a house was East Renfrewshire, with the average house price sitting at around £249,238.

Speaking to our sister publication Scottish Legal News, Isobel d’Inverno, director of corporate tax at Brodies LLP, said: “The introduction of LBTT has undoubtedly helped first-time buyers, and indeed anyone buying a house for £333,000 or less. The impact on the rest of market remains to be seen.

“The rates of LBTT are higher at the upper end of the residential market and there has also been the introduction of the 3 per cent supplement. On the other hand, the top rate of LBTT on commercial property at 4.5 per cent is actually now lower than the equivalent rate of SDLT, which is 5 per cent.

“After all, this is the first year in which the Scottish government has collected LBTT, so we need to wait for the new tax to bed down before forming any long-term view.”