Government 'must stop dithering over stamp duty'

Monday, 11, Aug 2008 10:25

The government must stop 'dithering' over the future of stamp duty, claims makers of home information packs (Hips).

The Association of Home Information Pack Providers (AHIPP) is joining the campaign from the National Association of Estate Agents (NAEA) for clarity and certainty over the future of stamp duty.

Last week speculation grew the government will suspend the tax or provide some kind of payment holiday to add greater impetus to the housing market.

Since then estate agents have reported a further fall in interest from buyers - already low due to falling prices and the credit crunch - as those looking to purchase a property wait to see if they can escape a bill.

The government has since denied reports, but uncertainty still remains.

Mike Ockenden, director general of AHIPP, said: "The few buyers that were out in the market place have put their plans on hold in the hope that moving house will become cheaper in the next month or so, this dithering by the government is making a desperate situation even starker."

AHIPP is also backing a call from the Council of Mortgage Lenders (CML) for the government to incentivise lenders to start issuing bonds into the public markets, along with extra help for house builders.

Mr Ockenden concluded: "The suspension of stamp duty, incentives to mortgage lenders and support for developers will give the government a real chance of kick starting this dreadful market.

"The number of new properties standing empty is astonishing. By taking in these lower priced completed properties government could provide real support to key workers, particularly in inner city areas."