SURVEYORS have said that scrapping stamp duty in favour of the new Land and Buildings Transaction Tax (LBTT) will deliver a boost to the housing market this year.

A survey of its members by the Royal Institute of Chartered Surveyors (RICS) found that most think LBTT will lift sales and house prices by up to five percent when it comes into force in April.

They expect the new tax, along with reform of stamp duty announced by Chancellor George Osborne in December, to stimulate activity in the market as house buyers will face fewer up-front costs than they would have in 2014.

The number of surveyors saying that they expected sales to rise grew by almost 70 per cent last month, while around a third more expect to see the value of property increase in 2015.

Under LBTT, buyers will not be taxed on sales below £135,000 and will pay two per cent up to £250,000. With the average house price in Scotland currently standing at £194,000, this means less tax will be paid on the majority of transactions.

However, costs increase sharply on property above £250,000, with tax on a £400,000 property £5300 more than at present, and as much as £22,300 will be added on to the cost of purchasing on a home worth £750,000. Million-pound properties will incur an extra £27,300 in tax.

Sarah Speirs, director RICS Scotland, said: "We expect changes to stamp duty, and the subsequent introduction of LBTT, will provide a timely boost to activity in the housing market throughout Scotland, however, there remain significant challenges particularly for first time buyers seeking to take an initial step onto the property ladder."

The RICS survey also discussed the impact of home reports, finding that more than three-quarters of surveyors believe the documents to be a valuable tool following the publication of the Scottish Government's five-year review of the system.

However, the number of RICS members reporting a drop in business grew in November and December, after a bounce in October following the conclusion of the independence referendum

A shortage of housing stock has also had an impact on the property market, leading to demand outstripping supply.

Ms Speirs added: "Critically, the stock of property on the market, as identified in the Scottish Housing Commission Report, continues to hover close to historic lows with new instructions to agents falling in ten of the last twelve months.

"Indeed, there is a risk that with so little housing available any pick-up in demand could rapidly feed through into higher prices rather higher sales.

"The RICS lead indicators do provide some encouragement that the level of housebuilding will continue to increase over the course of this year but even with further growth, the volume of home starts will still fall well short of the number of new household being formed let alone making a dent in the historic shortfall of housing across all tenures."

RICS member Robbie Buchanan MRICS, of Graham and Sibbald in Kirkcaldy, said: "December has been quieter as expected, however, there is generally a feeling of anticipation for improved market activity in January/2015."

However, estate agents are less happy with the changes brought about by LBTT, and have been sceptical of the impact it will have the market.

Michael Luck, managing director of the Slater Hogg and Howison, said: "It's conceivable that it will lead to an increase in sales, but only at the lower end of the market and the sums of money we are talking about will not be all that great.

"In reality LBTT is a tax on the middle classes and will disproportionately affect buyers who are not rich by any means."

Faisal Choudhry, associate director and head of Scottish research at Savills, said: "It will definitely boost sales under £250,000 because it is lower than the stamp duty rate, so the majority of the Scottish market will benefit.

"But above that level and family houses, including many of those in Edinburgh, Aberdeen and Glasgow, will cost more than they do now."