ESTATE agents have welcomed a review of the tax on property purchases to replace stamp duty amid warnings that the Scottish Government's existing plans would have hit families disproportionately.

Finance Secretary John Swinney has announced he will examine again the proposed Land and Business Transactions Tax (LBTT) before it comes into force in April.

It comes after he faced increasing pressure to revise the bands and rates of LBTT, which will replace stamp duty in Scotland from April and was set out in October's draft 2015-16 Budget.

The rates are to be reconsidered in light of a deal being reached between the Scottish and UK governments on how much Scotland's block grant from the Treasury will be reduced to take account of receipts from newly devolved taxes - including LBTT - flowing directly to Holyrood.

The move follows an overhaul of the UK stamp duty system announced by Chancellor George Osborne in his Autumn Statement.

Property industry experts have welcomed the move, saying that the original bands were too skewed towards extracting funds from the top end of the market.

Dr John Boyle, director of research and strategy at Rettie and Co, said that it was important that ministers listened to people working in the industry and took their views on board.

He said: "We are very happy that the government has considered feedback from the consultation on LBTT they received from the industry and from individuals and families.

"We argued that the 80 percent who would save money through what was proposed would save what amounted to a few hundred pounds, while the 20 percent who would pay more would be unfairly hit.

"People in Edinburgh, Aberdeen and parts of Glasgow would all have been affected and it would have been a bit punitive on buyers in these areas.

"Trying to buy a family property in these cities for less than £250,000 is pretty difficult, and very few family homes sell for less than this."

One of the major complaints with the tax was the proposed jump from two per cent on the proportion of the transaction between £135,000 and £250,000 to a ten per cent rate on purchases above £250,000 and up to £1 million

Mr Boyle added: "It would be reasonable to have a five or seven percent bracket before you get to the ten per cent level, and we would expect this to be brought in as there was too big a jump.

"It's good to see that the government have listened."

Faisal Choudhry, associate director and head of Scottish Research at Savills, said that many estate agents had made their feelings known during a consultation on the LBTT rates.

He said: "When LBTT was announced the government did say that the rates would be reviewed and that they would ask for evidence and opinions from those working in the industry, so we welcome the fact that they have listened.

"The change to stamp duty means that people would be no better off under LBTT, and it affects family housing in core locations of Scotland.

"In Glasgow, Edinburgh and Aberdeen family housing is more expensive than the average and these three areas make up around three quarters of all transactions in Scotland."

The Scottish Conservatives, who attacked the LBTT as a "tax on aspiration", previously called on Mr Swinney to pass on the savings by reducing the rates.

Announcing the review, Mr Swinney said: "The Chancellor's decision to introduce a new stamp duty system overnight, without warning and consultation, means that while 80 per cent of homeowners continue to pay less tax or no tax at all under the Scottish system we now have the opportunity to review the rates and ensure they are right for Scotland."