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Stamp duty delays causing havoc
Delaying the decision regarding stamp duty has had an adverse effect on the property market, says the National Association of Estate Agents (NAEA).
The NAEA recently carried out a survey of their members, asking them for their views on the hot topic of stamp duty.
The survey achieved one of the biggest responses ever, highlighting the need for the government to make up its mind on a course of action on this debate.
Alistair Darling has said that he may grant a stamp duty holiday in the autumn. Twenty-five per cent of estate agents claim that a sale has fallen through as a direct result of the Chancellors comments about considering a stamp duty holiday, as people are waiting to save money if it does happen.
A whopping 92 per cent of agents believe that the Chancellors remarks have increased customers concerns.
Peter Bolton King, chief executive of the NAEA, said: “Instead of the Government formulating a careful plan outlining their thoughts clearly and concisely with a clear time frame in mind, this comment was simply made off-the-cuff.
“This is not particularly helpful in the current climate. It seems that there had been little regard to how this speculative comment might impact on what is already a delicate market.
“These figures clearly show the effect that this ‘loose’ statement has had on consumers and the property market as a whole, none of which are encouraging,” Mr Bolton King went on to say.
“Whilst a stamp duty holiday, if immediately put into place, will of course help ease the woes of consumers temporarily, we continue to appeal to the Treasury to carry out a complete overhaul of stamp duty and put in place a complete package of measures.
“Consumers need reassurance and whilst a stamp duty holiday will help alleviate some financial pressures they are currently experiencing it will not help propel resurgence in the market place in the long term.
“There are many factors facing the property market that need care and attention to help alleviate the problems consumers currently face, for example; liquidity, deposits needed for first time buyers and repossessions.
The government needs to turn its attention to all these factors not just one at a time.
“Clear and immediate decisions in this area need to be made. Sometime in autumn is not good enough!
“The government need to clear up this uncertainty as soon as possible to help minimise the disruption to the market place and help the British economy move forward.
“We would welcome the opportunity to meet with the Treasury to try and help overcome this problem,” Mr Bolton King went on to say.
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