MPs call for stamp duty holiday extension as experts warn of housing market collapse

The Government has said it had no immediate plans to extend the stamp duty holiday - despite more than 140,000 people signing a petition calling for an extension, amid warnings the imminent deadline could spark a collapse in the housing market.

The number of petition signatures sparked an online, parliamentary debate on February 1.

However, treasury minister Jesse Norman told MPs there were no definite plans to change the deadline - meaning anxious home-buyers facing a tax bill of up to £15,000 if they cannot complete by the end of the holiday may have to wait until Chancellor Rishi Sunak's budget next month for a definitive answer.

Mr Sunak announced the holiday last summer, raising the threshold for stamp duty on house purchases from £125,000 to £500,000 - meaning anyone buying a home for £500,000 or less would not have to pay any of the tax.

However, the holiday runs out on March 31 and experts are concerned the property market could collapse if it is not extended. The Government's stamp duty calculator shows someone purchasing a house for £500,000 would face a bill for £15,000 if they fail to complete by the deadline, sparking fears sales could fall through.

Answer on extension may not come until March

Both Conservative and Labour MPs said the tax break should be extended at the virtual debate.

Tory MP Elliot Colburn said a "tapered" end to the holiday would "help the market not suffer overnight shocks like it could on March 31".

However, Mr Norman said, although the Government was aware of the strength of feeling, there was no definite Government change of mind.

He hailed the holiday as a success, driving the property marke