Tories attack ‘stamp duty games’

Posted by admin on 10 August, 2008 under Business news | Be the First to Comment

The Conservatives have accused the Chancellor of “playing damaging short-term games” with the housing market by indicating possible stamp duty changes.

Some estate agents have told the BBC that purchasers are holding back till they know whether a stamp duty holiday will take effect.

The measure is seen as an incentive for buyers to kickstart the housing market.

The Treasury has said it may form part

of a package of housing measures but insisted no decisions had been taken.

‘Uncertainty’

What is not clear yet is whether it might apply just to the 1% band, which applies to properties valued between £125,000 and £250,000, or to the higher rate bands as well.

Estate agents welcome any move to lift the stamp duty burden.

“The rumours of a stamp duty holiday have created a “wait and see” mentality from potential buyers” Graham Lock, estate agent

But some have told the BBC that prospective purchasers are reluctant to go ahead until policy on stamp duty is clarified.

And that in itself could cause short-term damage to the market.

“The rumours of a stamp duty holiday have created a “wait and see” mentality from potential buyers which in turn is hurting the market even more,” said Graham Lock, who runs online estate agency housenetwork.co.uk.

Some buyers had already indicated they were pulling out of deals, he added.

No decisions

Trevor Kent, former president of the National Association of Estate Agents, said that instead of launching a lifeboat Chancellor Alistair Darling had pulled the plug on what was left of the market by inept indecision.

For the Conservatives, shadow Treasury spokesman Philip Hammond has written to the chancellor calling for an end to the uncertainty and accused the government of deliberately undermining the market.

A Treasury spokesman said the suggestion that any announcement on stamp duty had been made was simply wrong.

As the chancellor had made consistently clear, he said, no decisions have been taken.

News reported by The BBC