Alistair Darling was accused by his own backbenchers last night of acting “irresponsibly” amid mounting confusion over proposals for a “stamp duty holiday”.

Labour MPs warned the chancellor that he risked making a “grave and profound error of judgment” by failing to make a swift decision on whether the tax should be suspended temporarily.

Evidence emerged this weekend of the damaging effect the delay was having on the property market. The National Association of Estate Agents (NAEA) said that one in four members had seen agreed house sales fall through as a direct result of the uncertainty.

Jim Cousins, a Labour member of the Treasury select committee, said: “This has got to be sorted, and fast. It would not be so bad if the market were strong and rising, but it is not - it is weak and falling.

“To hope this will just go away would be a grave error. It would be very irresponsible to let this uncertainty go on.”

Darling has confirmed that officials are considering the move but insists he will not be “bounced” into making a quick decision.

Stamp duty receipts from property sales were worth £6.4 billion to the Treasury in 2006-07. Suspension would enlarge the sizeable hole in public finances.

The Treasury insists it is not to blame for raising expectations but Darling failed to rule out such a “holiday” last week.

Backbenchers are growing increasingly frustrated by his approach, which they fear is angering voters.

Cousins said: “Once the suggestion was made that the Treasury was considering it the government had to clarify what was going on and the time scale for the review. It had to set an early date for making it clear what it had in mind, one way or another.”

Ian Gibson, another senior backbencher, said: “Since the Treasury has raised the issue it should really follow through. It should make a statement. There’s still an element of dithering.”

There is growing evidence of a rift between Brown and Darling on the issue.

City sources say officials at No 10 have been casting around for “big ideas” but the Treasury appears increasingly cool.

Yesterday the prime minister would not say whether the government will suspend duty. Appearing at the Edinburgh book festival he refused to answer questions on the issue.

A survey by NFEA in the past two days showed that 92% of estate agents believe the failure to clarify the situation is making house buyers and sellers nervous.

Peter Bolton King, chief executive of the NAEA, has twice written to Darling calling for an urgent meeting between ministers and the housing industry to clarify the situation. By last night he had received no reply.

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