Rishi Sunak is told to slash stamp duty now as economists warn a delay could wreck the housing market
- Rishi Sunak is considering a six-month stamp-duty ‘holiday’ on most homes
- Reports suggest the Chancellor may signpost plan in his mini-Budget tomorrow
- Economists say dithering on issue could put housing market in deep freeze
Rishi Sunak was under growing pressure to make an immediate cut in stamp duty last night after warnings that a delay could wreck the housing market for months.
The Chancellor is considering a six-month stamp-duty ‘holiday’ on most homes later this year to kick start Britain’s dormant market.
Reports suggest he may signpost the plan in his mini-Budget tomorrow but delay the start until the full autumn Budget.
Economists and property experts last night warned that dithering over stamp duty changes could put the housing market into the deep freeze [File photo]
Treasury officials have been looking at a temporary six-month increase in the stamp duty threshold from the current level of £125,000 to an amount between £300,000 and £500,000 to stimulate demand.
But economists and property experts last night warned that dithering over stamp duty changes could put the housing market into the deep freeze.
Paul Johnson, of the Institute for Fiscal Studies, said any uncertainty about a potential change would distort the housing market by encouraging people to delay their decisions.
The Chancellor is considering a six-month stamp-duty ‘holiday’ on most homes later this year to kick start Britain’s dormant market
He said Mr Sunak must launch any duty holiday tomorrow or decisively rule it out.
‘To do otherwise could ruin the housing market for months to come,’ said Mr Johnson. His comments were echoed by buying agent Henry Pryor, who said: ‘Either announce that you are changing stamp duty or announce that you are not.’
Economist Julian Jessop urged the Treasury to ‘stop flying kites’ over potential cuts in both stamp duty and VAT.
He said: ‘The announcement of a stamp duty holiday, but not until the autumn, could kill the housing market in the meantime. There has been similar speculation of an across-the-board VAT cut, which could delay spending on other big ticket items too.’
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