Stamp duty uncertainty scarring any optimism

The head of the National Association of Estate Agents (NAEA) has said that uncertainty on the future of stamp duty, brought about by mixed signals from the Government may scar any potential optimism growing in the housing market.

Peter Bolton King, Chief Executive of the NAEA said: “The latest report from RICS highlights that agents and consumers are still struggling in the current climate. However, despite this fact, the report as a whole shows some tentative signs that the decrease in housing transactions is likely to start to stabilise over the months ahead and that there may be some marginally better conditions in the market place in the near future. Indeed, these figures confirm the findings from our own survey that whilst transactions are still low the market is showing signs of levelling out.

“However, whilst aspects of this report are encouraging, I remain concerned that the optimism for the next few months may be scarred by the current uncertainty regarding stamp duty. The confused messages being sent out by the Government will undoubtedly have an impact on consumer confidence as the public is understandably confused at present about whether to buy or sell. Members of the NAEA have already seen buyers adopt a ‘wait and see’ attitude as a result. This of course will have repercussions on the property market as a whole and I fear next month’s figures may reflect this halt in proceedings rather than the levelling out in the market place that may have naturally ensued.

The Government needs 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.”