Recent reports have claimed the Government is looking at temporarily axing stamp duty in a bid to boost the flagging housing market in the UK. However, the Government has called the reports speculation, and said no official proposals have been put forward.

But Simon Ainsworth, head of the residential property department at Napthens Solicitors, Lancashire, has warned that the uncertainty is meaning the housing market is actually suffering even more.

Figures from the National Association of Estate Agents (NAEA) show 24 per cent of estate agents have witnessed sales fall through due to the government’s lack of clarity on stamp duty.

Mr Ainsworth said: “The housing market is already in a difficult situation – many buyers are not making offers for properties, and waiting for prices to fall even further.

“This dithering by the Government means that buyers are even less likely to make offers, meaning the market is becoming even more stagnant. A quick, decisive response over the Stamp Duty situation is what is needed, to end this speculation.

“If the market is to recover, the Government must act quickly.”

Stamp Duty raised an estimated £6.5 billion for the Government last year. Currently, people buying properties worth between £125,000 and £250,000 pay one per cent Stamp Duty, and those spending more than £250,000 pay three per cent. Buyers spending £500,000 or more pay four per cent.