Chancellor of the Exchequer Alistair Darling is being put under increased pressure to confirm whether or not he will be suspending stamp duty to help restore the failing housing market.

The proposal has been welcomed by builders, but before Mr Darling makes a decision he said he was looking at a "range of options".

Peter Bolton King, Chief Executive of The National Association of Estate Agents (NAEA), said the Government's decision to suspend stamp duty is "very encouraging", however he said "decisive action needs to be taken immediately".

"One concern is that the anticipation of the suspension of stamp duty may halt the transactions in the housing market even further until the decision is finalised either way," said Mr Bolton King.


"Although we welcome this news we continue to appeal to the Treasury to carry out a complete overhaul of stamp duty."

Speaking on the BBC Radio 4 Today programme, Mr Darling said: "I am looking at a number of measures and I am not going to be drawn on that today because we have not concluded what exactly we need to do. It is helping people that is important. I want to look at a range of options that will help people."

Stewart Baseley, Executive Chairman at the Home Builders Federation (HBF), said: "This is something the HBF has been championing for a number of months as one of a range of proposals to invigorate the housing market. It is a welcome initiative and shows that Minsters appreciate the problems the current housing market situation is causing people looking to buy and sell properties, and the impact it is having on the wider economy.

"However, if it is to deliver the desired benefits, it needs to form part of a coordinated package of measures implemented quickly. These need to include action to get liquidity back in to the mortgage market, as well as further steps to assist first time buyers and moves to ensure much needed housing production is maintained."

(CD/JM)