Stamp duty indecision threatens housebuilding

Chancellor Alistair Darling has been accused of playing “damaging short-term games” with the housing industry for dithering over whether to suspend stamp duty.

Housebuilders fear home buyers will hold off on purchases if they think the tax is coming in later in the year, causing a further drop in the market.

They say the market could stall for another three months if buyers delay to save the potential £5,000 to £9,000 in stamp duty.

Darling flagged the stamp duty holiday as a possibility earlier this week but said no decision would be made until the pre-budget report in October or November.

The Home Builders Federation told the Financial Times it could be detrimental to debate lifting stamp duty for too long.

Meanwhile the Tories wrote to Darling urging him to end the uncertainty, according to the Daily Mail.