The Government’s delayed decision on what to do about stamp duty is having a damaging effect on the property market, according to a survey of members by the National Association of Estate Agents (NAEA), which is calling on the Government to take swift action.
 
A week after the announcement that there might be a stamp duty ‘holiday’ in the autumn, 25% of agents are claiming that a sale has fallen through as a direct result of Chancellor Alistair Darling’s comments. Estate agents are almost unanimous (92%) that the Chancellors remarks have increased consumers concerns.

“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,” said Peter Bolton King, Chief Executive of the NAEA.

“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.

"I understandably have been taking a plethora of concerned calls from members, some of whom are already starting to feel the impact this comment has had on ready and waiting purchasers. The result being people who have already agreed to purchase a property are now asking what they should do.

“Consumers are confused, and with this uncertainty transactions in the market have been and will continue to slow down.  From past experience we know that announcements concerning future changes can have a dramatic effect on the entire market and can cause huge distortions.  Already, consumers are adopting a wait and see attitude but the worry is how long will it last?"

When the respondents were questioned whether they think the Chancellor should wait until the Autumn Statement before making any further comment about helping the market, 92% answered ‘no'.

"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,” Mr Bolton King added.

“Consumers need reassurance, and whilst a stamp duty holiday will help alleviate some financial pressures they are currently experiencing, it will not help propel a 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. “

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