Alarmingly, just a week since the announcement the results indicate that 25 per cent of agents now claim that a sale has fallen through as a direct result of the Chancellor’s comments. 92 per cent of agents believe the Chancellor’s remarks have increased consumers concerns.
Over the past four days members were asked a series of questions relating to the recent speculation that the Chancellor may grant a stamp duty holiday in Autumn. The results clearly demonstrate agents’ strong feelings on how this situation has been handled and the impact this has had on the market to date.
Peter Bolton King, chief executive of the NAEA commented: “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. 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.”
The NAEA then went on to ask members ‘have any applicants asked whether they should buy now or wait to see what the Chancellor says in the Autumn Pre-Budget Statement’. 75 per cent of respondents stated ‘yes’ whilst only 25 per cent of agents said ‘no’.
A further question then asked ‘have any current purchasers asked whether they should buy now or wait and see to what the Chancellor says in the Autumn Pre-Budget Statement’. A worrying 62 per cent of respondents answered ‘yes’ whilst only 38 per cent of agents said ‘no’.
King continued: “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?”
Finally, 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 a resounding 92 per cent answered ‘no’ whilst a meagre eight per cent of agents said ‘yes’.
King added: “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. 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. We would welcome the opportunity to meet with the Treasury to try and help overcome this problem.”
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