Bellway suffers 'avalanche' of cancelled sales

In a trading update the group revealed that sales actually completed fell 14pc in the year to the end of July, down from 7,638 last year to 6,556.

Alistair Leitch, finance director at Bellway, said: "Since Easter we've had an avalanche of cancellations - particularly in the last two months."

Grim prediction for housebuilders

He said that the number of deals falling through had risen by 125pc over June and July, and would have been worse had the company not "thrown money at the situation".

In January, industry giant Taylor Wimpey offered homebuyers a service to sell their property and pay all the costs associated with a move, including stamp duty and £1,000 of legal costs. The company will even pack up belongings and pay for a removal company.

Last Thursday, the City understood exactly why the firm was so keen to lure buyers. It revealed that a third of its profits were wiped out as it was forced to make a £283m write-down, following a review of the value of its land holdings and housing developments in the US. Its Spanish business is also suffering, while, in the UK, TW chief executive Peter Redfern admitted that the firm may build 15 per cent fewer homes than last year. The builder, worth £4.32bn after the merger of George Wimpey and Taylor Woodrow last July, now has a market value of £1.77bn.

Barratt Homes has announced an offer to pay the stamp duty on new purchases, even if the government decide not to suspend the tax in the short term. As ‘Rome burns’ the government’s lack of action has created a paralysis in the housing market with more and more home buyers looking to wait until a potential scrapping of stamp duty is announced later this year.

This is a classic marketing campaign from Barratt Homes and one which deserves to be successful even if just for their sheer nerve and ability to make good out of a rotten situation. However, this deal has not stopped Barratt Homes joining the chorus of disgruntled players in the property market and piling more pressure on the government to clarify its position.

News that the Chancellor Alistair Darling pulled out of a BBC interview after being warned that he would be asked to clarify the position on property purchase stamp duty has further muddied the water. If the government had looked at the issue seriously surely they would be ready to move now? Or is this yet another ‘we are listening’ episode which looks like back firing dramatically?

LONDON - Barratt Homes has placed a tactical ad in today's Metro newspaper riding on the back of news reports indicating the Government is considering measures to alleviate the burden of stamp duty.

The full-page advert sends a message to the Chancellor, Alistair Darling, saying:

"Don't worry Darling, we're already paying stamp duty for our buyers."

"Alistair Darling, the Chancellor, is considering a plan which allows homebuyers to put off paying their stamp duty.

"We're wondering what took him so long. At Barratt we're already helping people move: we could pay your stamp duty, legal fees and moving costs - without asking for a penny of it back."

The Treasury’s Shadow chief secretary Philip Hammond accused the Government of being in denial over the fallout from its stamp duty policy.

Hammond says: “The Government’s position on stamp duty is a toxic combination of chaos and denial.

“First the Chancellor refused to rule out a suspension of stamp duty. Then the Treasury denied it was on the table. Then the Housing Minister told the BBC the Government is considering it after all.”

David Cameron has attacked the government for a "completely reckless" briefing that stamp duty could be axed temporarily to boost house sales.

"Far from freeing up the housing market, they have actually frozen it," the Conservative leader told reporters.

He is holding talks later with the National Association of Estate Agents (NAEA) - a body he claims the government has refused to meet.

One London homeowner who was due to exchange this morning told the Standard his buyer postponed after hearing Mr Darling's comments.

"It is unbelievable that Gordon Brown and Alistair Darling have caused this to happen," said Peter,who did not want his full name published.

"My house, an ordinary Victorian terrace in south-west London, was going for £770,000 which meant a stamp duty bill of £30,800.

"I completely sympathise with my buyer who is understandably unhappy about paying that amount if there is a chance of avoiding the tax but it has left me in a real mess.

"The removal agents have been booked, my daughter has a place in her new school and we were all ready to exchange on the house that we are buying. Now everything may have to be cancelled."

Flagship branches of major estate agents in central London are being closed as house sales nosedive.

Offices in prime locations including Chelsea, Knightsbridge and Fulham have shut and some industry figures are admitting the market is now worse than ever.

Agents say sales in the capital have fallen from an average of about 10,000 a month to 5,000.