Stamp duty dither threatens property market

Urgent clarification is required by the government over the potential for a stamp duty exemption because it threatens to distort the housing market, warned industry experts.

Announcing a change to the property market that will take place in the future was dangerous, according to the National Association of Estate Agents.

'It is always dangerous to announce that something will happen in the future,' said Peter Bolton King, NAEA chief executive, in the FT.

He said that the Tory government's introduction of mortgage interest relief in the late 1980's distorted the market and created a housing sale bubble, and a stamp duty exemption in the future could have the reverse effect.

The Royal Institution for Chartered Surveyors called for urgent clarification of the situation.

Property deals are falling through as homebuyers are delaying purchases to see if a stamp duty exemption is introduced.

But there was no sign of an announcement by chancellor Alistair Darling, as he refused to give out any more details on what measures were being considered to help revive the housing market, reported the Times.

The Treasury said last night it was 'simply wrong' to say that the government had put forward a proposal on stamp duty.

'As we have consistently said, there are a number of options we will need to consider to help businesses and people through what is undoubtedly a difficult time,' it said in a statement.

Further reading:

Treasury keeps mum over stamp duty break