Minister fails to end stamp duty speculation

Housing minister Caroline Flint has failed to put an end to speculation that stamp duty is to be suspended.

Ministers have been accused of dithering and risking a collapse in house sales after the idea first emerged earlier this week.

But Ms Flint refused to confirm or deny that a duty freeze would form part of Gordon Brown's economic recovery package expected to be unveiled in the autumn.

She said the Government was looking at a range of issues to tackle the slump in the housing market.

The minister acknowledged that homeowners and people planning to sell their properties were going through a "tough time", but she said freezing stamp duty would not necessarily "kickstart" the housing market.

Chancellor Alistair Darling said he was looking at a "range of options" to boost the faltering mortgage market including a possible suspension of stamp duty.

That prompted some estate agents to warn that buyers could put their purchase plans on hold as they wait for the duty to be suspended, causing an immediate slump in sales.

Ms Flint said: "I have said on a number of occasions that we are looking at all the options and stamp duty is one of them, but I've also always said that stamp duty and removing it in itself, may not kickstart the market in the way that people think it might."

She added: "We know, for example, that deposits have gone up because the old mortgages have gone and now lenders are asking for bigger deposits.

"Stamp duty for the people who pay it and many people who don't, represents a small amount of the upfront costs, so we have to look at all these issues to make sure we get it right."

Ms Flint acknowledged that the housing market was going through a difficult period.

Estate agents are reporting their lowest level of sales for 30 years.

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