“Would the government please take off its hobnail boots and tread carefully over the tender shoots of new business, said Graham Lock, co-founder of on-line estate agency Housenetwork.co.uk.
Lock believes the stop-start behaviour over stamp duty has simply frozen many exchanges as clients are calling a halt on their deals to see if the ‘holiday’, if it goes ahead, can save them money and this is causing all kinds of negative consequences.
“It’s a classic case of clumsy messaging causing yet more mayhem,” said Lock.
His comments come after Chancellor Alistair Darling’s comments about a possible Stamp Duty ‘holiday’ to help kick start the property market.
The news was first welcomed by the industry, but property specialists are now criticising the government’s delay at making any decision.
However Housing Minister Caroline Flint has accused some estate agents of hyping the issue as she believes that Stamp Duty does not affect the majority of first timer buyers.
Stewart Baseley, executive chair at the Home Builders Federation (HBF) said, “This is something the HBF has been championing for a number of months as one of a range of proposals to invigorate the housing market.
“It is a welcome initiative and shows that Minsters appreciate the problems the current housing market situation is causing people looking to buy and sell properties, and the impact it is having on the wider economy. However, if it is to deliver the desired benefits, it needs to form part of a coordinated package of measures including crucially action to get liquidity back in to the mortgage market, as well as further steps to assist first time buyers and moves to ensure much needed housing production is maintained.”
The Council of Mortgage Lenders (CML) suggests that while addressing funding shortage remains critical to underpinning the housing market, the government should not lose sight of the fact that it also has an opportunity to reform stamp duty, and in a way that can support home ownership and first-time buyers.
The CML says the case for action is even more compelling given that the shortfall in revenue from residential stamp duty will be close to £3 billion in the current tax year.
Teresa Kane, Property Sales Manager at Cluttons, said: “News that the Government is considering an imminent stamp duty holiday is music to the ears of homebuyers, who are already struggling with the spiralling costs of moving home.
“Homeowners will be encouraged to move immediately rather than wait and see if the market improves, in order to benefit from this temporary saving on stamp duty. This would bring much needed liquidity to the market and also help end the current stand off between buyers and sellers who cannot agree a price, as many buyers will put this extra cash towards securing their home.
“First time buyers will be able to put the money they save towards increasing the size of their deposit, enabling them to access the mortgage market more easily.
“However, if the Government does decide to go ahead with this policy it must be implemented immediately, otherwise it could bring total stagnation to the market as buyers wait for the suspension to start before completing on their purchase."
