Stamp duty rumours cause housing market to slow further

Over recent months the housing market has suffered numerous problems, and sales of properties in the UK have slumped to their lowest in decades according to some industry officials. There have been a number of factors that have affected property sales recently, and this includes falling house prices, tighter credit conditions, and higher deposit requirements amongst lenders.

It has now emerged that property sales have slumped further as a result of comments recently made by the Chancellor, Alistair Darling. He recently indicated that the government was considering suspending stamp duty for first time buyers purchasing property of up to £250,000. However, no confirmation was given in relation to these plans and this has put people off buying in the short term.

Buyers are now keen to sit tight and wait to find out whether they could save thousands of pounds on stamp duty a few months down the line, but no definite decision on the suspension of stamp duty is expected until the autumn, by which time the housing market may have been damaged further.

One consumer commented on the situation and about Darling’s suggestion, stating: ‘If he is going to suspend Stamp duty it has to be done right away. If he hints it will be announced in an October budget then the market will die completely until then.’