Siobhan Kennedy
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Alistair Darling was resisting calls last night to make an announcement on
stamp duty despite evidence that homebuyers are delaying purchases because
of the uncertainty surrounding the tax.
Estate agents reported that buyers were pulling out of purchases and
cancelling viewings in the hope that they would avoid paying the tax if they
waited until later in the year.
The Chancellor withdrew from an interview linked to the subject last night,
two days after refusing to rule out that he planned to suspend stamp duty
temporarily in an attempt to stimulate the housing market.
Mr Darling had said that he was considering a number of measures to “help
people with housing”. His remarks provoked widespread speculation that the
measure would be introduced this autumn.
The Treasury last night described as “simply wrong” claims that the Government
had put forward a proposal on stamp duty. “These stories are based on
speculation. As we have consistently said, there are a number of options we
will need to consider to help businesses and people through what is
undoubtedly a difficult time,” it said in a statement.
Richard Hair, an estate agent in Leigh-on-Sea, Essex, said that he had closed
the sale of a house on Monday for £280,000, but after the Chancellor’s
comments the buyer said that he was considering pulling out because he might
save on the stamp duty of £8,400. “The purchaser rang and asked to have an
extra 3 per cent off the price because he was going to have to pay stamp
duty, which he might not have to pay later.” The vendor was refusing to
lower the price, Mr Hair said, and the deal could fall through.
Doug Sleaper, of Townends, said that a buyer in the agent’s branch in Staines,
Surrey, was ready to make an offer on a £765,000 property but had decided to
hold back until October because he might save £35,000 in stamp duty. Five
people had suspended their searches at the agent’s office in Brook Green,
West London, as a direct result of the uncertainty.
Mr Sleaper said that even though it was explained to potential buyers that any
changes to stamp duty would be unlikely to benefit transactions at the
high-end of the market, purchasers were still deciding to wait.
Peter Bolton-King, head of the National Association of Estate Agents, said
that Mr Darling needed to clarify his intentions urgently. “If the
Government is serious about doing something to help this situation we need
them to actually come out and say what it is they’re going to do,” he said.
Philip Hammond, Shadow Chief Secretary to the Treasury, said: “The last thing
we need is a government that is making things worse by deliberately creating
uncertainty over stamp duty. Gordon Brown and Alistair Darling should stop
playing short-term games with the housing market and start to show the
leadership this country needs.” The Tories have said that they would lift
the threshold permanently for first-time buyers to £250,000.
Stamp duty is levied at 1 per cent for houses from £125,001 to £250,000, 3 per
cent for £250,001 to £500,000 and 4 per cent above that. It will be
difficult for Mr Darling to cancel stamp duty, not least because it
contributes £6.5 billion a year to public finances.
The Chancellor has commissioned Sir James Crosby, the former chairman of HBOS,
to consider how banks and building societies can be encouraged to start
lending again at levels that people can afford. Sir James has said that no
consensus exists.

Sam Coates's blog about Westminster, politics and spin
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To err is human, to really screw things up requires Gordon Brown and Alistair Darling in charge of the nation's finances...
Peter, London,
Thank You very much dithering blundering Labour, i have just had the chain break for the sale of my house due to the speculation Stamp Duty.
Another example of inept leadership and a useless Labour goverment.
Steve Knutsen, Southampton,
Why dither? People cant be expected to have confidence in buying property if they cant even be sure on what it will cost! Why does everything have to wait until October? The decision needs to be made now. If labour dont know what to do,cant make decisions then its time for them to GET OUT.
olly white, Camborne , Cornwall
Another Labour induced shambles and it simply underpins that far from being part of any economic solution, Buggins and his glove puppet are part of the problem.
m collins, Leeds,
Does this Government have the answer to anything?
The only thing Brown and his incompetent rabble seem to be able to do is create a mess.
Dave Bridge, Southport, UK
Now Mr Darling is a ditherer like his master (and with similar lack of judgement).
Alasdair, Canterbury, UK
Reminds you of Laurel and Hardy.
Thats another fine mess Hmmm.
Dave Bridge, Southport, UK
Just another example of the effect of the country being run by people who have never run anything as complicated as a whelk stall. Question: will Cameron be any better.
KW, Bognor Regis, England
If anyone feels that the government should help people with housing, perhaps he should just put himself on the council house waiting list.
lotus, Hong Kong,
Neither Brown nor Darling has any grasp of tax policy, nor any wish to understand it.
Frank Upton, Solihull,
Darling flies his kite. The property market takes yet another totally unnecessary hit.
There will, of course, be no annoucement from Darling on this while Brown remains on holiday. He cannot, dare not, make a decision without 100% approval from his headmaster.
It's just the way our country is run.
Gerry, London,
It is this man's job to avert stupidity like this!!! He's not fit for purpose and never has been!!! If Brown was such a legendary Chancellor, he should have spotted this a mile away!!! I cannot even begin to imagine how much anger is wafting through the country due to this...
James Cullup, oxford,
This stamp duty fiasco is proof that Brown and Darling are busy saving themselves but not the economy.
Lisa, Chorley,
Another example of the mess that this government is bringing us. It's time for Alistair Dither and Gordan Bungle to go
Shaun, Llandysul, Wales
Darling should decide soon whether to charge for stamp duty or not. Dithering will help nobody
alan, Bristol, uk
I'm sure that Mr Crosby knows that banks and building societies will start lending at levels people can afford when house prices have fallen to levels that people can afford. Prices have a long way to fall yet!
Paul, Coventry,
Of course someone faced with a prospective Stamp Duty fee of £1000s will hold off closing a purchase now: its common sense. They will wait to see if there is a SD holiday, but if not, the Govt's incompetence in 'flying this kite' will exacerbate the fall in prices so either way they will save money.
Donna Walker, Effingham, England
Dithering Darling and Bumbling Brown strike again. Neither can make a decision to save their lives. The economy in crises but it's not Labours fault it's always someone Else's
Martin, Reading, Berkshire
Just watched most extraordinary interview on Newsnight with caroline flint. She lost it big style,she was blaming everyone else for the mess except for themselves. Labour raised the idea of stamp duty holiday but cannot accept they have now backed themselves into a massive hole! Time for them to go!
Pete Smith, Stroud,