Stamp duty dithering hits 83% of home movers

A large majority of potential home movers are delaying their home purchase in hope of a possible stamp duty holiday.

Earlier in August, Chancellor Alistair Darling hinted at a possible stamp duty break to help revive the housing market, but the Government has yet to confirm its plans, leading to widespread criticism.

A survey for Moveme.com of almost 1,500 potential home movers found 83% have delayed their decision to move home until the stamp duty position becomes clear.

When asked how the Chancellor’s announcement has affected them, 63% of those surveyed said they were postponing their move, while 20% had pushed back the date they were hoping to move home. Only 17% said they were unaffected.

One home mover, Nadia Elghamry, has had problems with her buyer since the Government hinted it might suspend the tax.

“Our chain has totally collapsed following the news that there might be a stamp duty holiday,” she says.

“Our buyer was a buy to let investor who immediately pulled out, and while we are hopeful we will find another buyer and press ahead with our own purchase, we too feel reluctant to pay over £8,000 stamp duty knowing we might avoid it if we wait.”

Charles Wasdell, director of Moveme.com, says suspending the tax would help the ailing property market, and assist first time buyers trying to meet more stringent deposit demands from lenders, but warns that the Government’s dithering is helping no one.

“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.”

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John Bakie
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Have your say:

"To add to Alistair Darling's inability to make an announcement, either way, about this, Home Information Packs are another problem. Who, in their right mind, is going to pay for one of these useless bits of paper, knowing that, with the current state of the market, they will, probably, have to pay for another one before they have found a buyer.

Is it not time for mortgage bodies to be presenting their views to government, either directly or through local MPs and trade bodies, for a suspension of the packs, which only benefit the pack providers, whose body is working overtime to validate their use. Add the suspension or reduction in stamp duty and something might start to move. But probably not Dithering Darling." Mike Hillier