ESTATE agents in Dorset say that chancellor Alistair Darling's dithering and indecision over stamp duty has caused uncertainty resulting in some buyers pulling out of the market altogether.

Chancellor Alistair Darling has reportedly said a cut in stamp duty was an option to help house buyers in a slow market but he is also considering a stamp duty holiday.

Alistair Brown, director at Brown & Kay estate agents in Poole said that Alistair Darling's interference with stamp duty was "cavalier, misplaced and reckless", adding that the tax has restrained the market.

He said: "The idea of touching stamp duty is mad. The entire discussion causes uncertainty.

"If someone buys a house for £500,000 they currently pay about £20,000 in stamp duty. If they learn there might be a stamp duty holiday they're not going to buy."

This view was supported by Nigel Price, director of Goadsby, who said: "One of the worst things Darling has done is to say that he is thinking about stamp duty.

"It's making some buyers pause and wait to see what happens. When people are uncertain they do nothing."

He believes that this has not helped the situation and that a greater range of mortgages is what the market needs.

"If first-time buyers save £1,500 in stamp duty, that's all very well but if they can't get a 90 per cent mortgage then it's no help."