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Minister: Stamp duty break may not work
Joe Murphy, Political Editor08.08.08
A stamp duty "holiday" may fail to help the housing market recover, a senior minister admitted today.
Housing minister Caroline Flint added to confusion over the Government's position amid warnings that uncertainty is hampering house sales. She confirmed a temporary suspension of the tax, which is £9,000 on average in London, is being considered by the Treasury. But she admitted there was concern it would not work as higher deposits and difficulty getting loans approved were the major factors in the depression of the market. "Stamp duty is not a Holy Grail in all this," she said.
Home sellers are begging for an early decision, as speculation has caused buyers to pull out of deals in the three days since Mr Darling said he was considering a stamp duty cut. Ms Flint said no announcement would come until the autumn pre-Budget report.
Peter Bolton King, chief executive of the National Association of Estate Agents, said: "[The Government] cannot play with the market like this when it is in such a delicate state."
