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'Stamp duty dither halts housing market'
Updated: 04:51 EST, 13 August 2008
The Chancellor's recent statements on stamp duty have caused house-hunters to delay putting in offers on properties, according to evidence from estate agents.
Confusion: Research carried out by the NAEA found that buyers are doubtful about going ahead
Thousands of buyers are putting off their purchase until later this year in the hope of saving thousands of pounds in tax, research seen by the Daily Mail suggests.
Almost two out of three estate agents – 62% - said that customers have expressed doubts about going ahead, and one in four – 25% - said that sales have actually fallen through in recent days.
Three-quarters reported that applicants who had registered an interest in buying a property are now asking whether they should wait for a 'stamp duty holiday'.
Industry experts warned that buyers are also demanding thousands of pounds off the asking price - the equivalent of what they might save if the tax were suspended.
The findings will pile pressure on Alistair Darling to clarify his plans for the levy.
The Chancellor has indicated he is considering a suspension of stamp duty to help kickstart the housing market.
But experts immediately warned that this could have a disastrous effect on the already fragile market, saying buyers would put their plans on hold at the prospect of saving a large sum in a few months' time.
Now a comprehensive survey for the National Association of Estate Agents, involving 1,400 of its members, has confirmed their worst fears.
It found that 92% reported that consumers' concerns about the market had been increased by Mr Darling's remarks.
And Peter Bolton King, head of the association, said the Treasury had turned down three of his requests for a meeting with ministers to discuss the turmoil. 'These figures show that a market which was anyway very delicate has been made even worse by this irresponsible briefing and speculation,' he said.
'We've been calling for a stamp duty holiday to be announced in the proper way, but in all honesty we'd now prefer them to come out and say they're not doing anything.'
Tory leader David Cameron yesterday accused ministers of being 'reckless' with the housing market by their failure to set out clear proposals.
'We said back in October that we would abolish stamp duty for nine out of ten first-time buyers,' he said at his monthly press conference.
'I do not know why the Government is still dithering. Their decision to brief out the possibility of a stamp duty holiday was completely reckless. Far from bringing up the housing market, they've actually frozen it.'
The stamp duty row has heightened tensions between Downing Street and the Treasury. Treasury insiders suspect Gordon Brown's aides of briefing newspapers about the possibility of a cut - something Number Ten denies.
Treasury sources say there is conflicting evidence of whether a temporary suspension of the tax - or allowing people simply to defer payment for a few months - would have any beneficial effect on the market.
Yvette Cooper, Treasury Chief Secretary, said that there was always speculation about possible tax changes and insisted that ministers were not to blame.
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NAEA: 'Stamp duty dither halts housing market'