Unintended consequences hit stamp duty suspension talk

Sept. 1, 2008
The news of a possible stamp duty suspension, at first welcomed by industry, has had a negative impact on the housing market, with potential buyers halting on buying decisions to see if an announcement will be made in the autumn. Peter Bolton King, chief executive of the National Association of Estate Agents (NAEA), pointed out that a survey of members’ views of chancellor Alistair Darling’s failure to clarify the rumours “got the biggest response ever – with the amount of vitriol directed at the government’s position similar to that we saw in relation to the introduction of home information packs.” With over a quarter of members apparently losing a sale as a result of the uncertainty, Bolton King received backing from almost all of NAEA’s members to pressure the government to instigate stamp duty relief immediately. <br><br>But his letters to the Treasury have met with simply an “acknowledgment,” he said. The situation also prompted chairman of the New Homes Marketing Board (NHMB), David Pretty, to write to the chancellor, pressing him to act on a scheme proposed in January – a national home deposit savings scheme, which would enable first time buyers to save for a deposit and associated fees. …

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