Delays over 'stamp duty rumour'

Last Modified: 27 Aug 2008
Source: PA News

More than eight out of 10 homebuyers are putting back their moving date in the hope that they may not have to pay stamp duty, a survey has shown.

Around 83% of people who are planning to buy a house said they had either put back their moving date or postponed it indefinitely following speculation over the future of stamp duty, according to website Moveme.com.

The decision to put moving plans on hold follows reports earlier this month that Chancellor Alistair Darling was considering temporarily suspending stamp duty payments or deferring payment of the tax to boost the housing market.

Stamp duty is charged at a rate of 1% of a property's value on homes sold for between £125,000 and £250,000, rising to 3% on those worth between £250,000 and £500,000 and 4% on properties sold for more than this level.

One in five people said they pushed back their moving date following the rumour, with people delaying their move from 37 days' time to 64 days, while 63% said they had postponed it altogether.

Only 17% of those questioned said their plans had not been affected by the reports.

The group said the Government's refusal to confirm it would be suspending stamp duty had further stalled activity in the market, and was leading to chains breaking down.

Charles Wasdell, director of Moveme.com, said: "It is plain to see the devastating effect the Government is having on the housing market, as it keeps tight-lipped about the possibility of a stamp duty holiday.

"The Chancellor must either press ahead with the legislation immediately or confirm that there will be no stamp duty holiday, so the people who are buying property move ahead with their purchase."

He added that a temporary suspension of stamp duty would help first-time buyers, as it would enable them to put more money towards their deposit, making it easier for them to secure a mortgage or qualify for a lower rate.

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