Buyers delay in hope of avoiding stamp duty Published: 14/08/2008

The government's indecision over stamp duty is hampering the property market, according to a leading estate agent.

Cluttons, based in London, said many would-be buyers are choosing not to make their move now in order to wait and see what Alistair Darling's decision on the unpopular tax is.

Recent speculation has suggested the Chancellor of the Exchequer is considering a hiatus on stamp duty on some properties in order to boost the failing property market.

But the government has failed to confirm whether the rumours are true and seems to be mulling over the idea.

However, James Hyman, partner for residential sales at Cluttons, said: "The lack of immediate, decisive action from the government following last week's speculation surrounding the possible scrapping of stamp duty is already having a negative impact on the housing market."

He added: "We warned implementation of a stamp duty suspension would need to be pushed through straight away if it was to be successful and avoid bringing further stagnation to the market.

"The possibility of avoiding this tax is too appealing to home buyers, who are reluctant to fork out tens of thousands of pounds for something they may be able to bypass in a matter of weeks, and as a result some buyers are stalling."

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