Stamp duty uncertainty may slow market, say critics

The admission this week by chancellor of the exchequer Alistair Darling that he is considering possible measures to help the housing market has created a level of uncertainty that is causing more people to postpone house purchases, it has been suggested.

Critics including shadow chief secretary to the Treasury Philip Hammond have said the comments by Mr Darling on BBC radio this week that he is considering possible measures have raised expectations that stamp duty holidays may be introduced, potentially saving thousands of pounds for those buying after the introduction of such a scheme.

As a result it is feared many will wait for an announcement before buying a home, consequently slowing the market down further.

Raising fears that this situation may linger until the pre-budget report in November, Royal Institution of Chartered Surveyors economist David Stubbs commented: "We urge the government to get on and make a decision. The uncertainty isn't great," the Daily Telegraph reports.

Sharing this concern, the House Builders Federation warned the Financial Times a delay long wait for a decision could be "detrimental to the market in terms of making people think about whether to proceed with a transaction".

With the possibility of the number of transactions falling further, some may consider the self build option as the way of obtaining the house they want.