The chancellor’s decision to extend the current stamp duty holiday is likely to push up house prices, the government’s official forecaster has said. The intervention comes amid growing demands for a more fundamental review of the tax, as well as fears over the introduction of a new mortgage guarantee policy.

The Office of Budget Responsibility said that the “main effect” of the stamp duty change, which Budget documents said would cost the exchequer more than £1.6bn, will simply be to shift transactions to slightly later in the year. However, the OBR did say that the measure would also cause “some additional transactions and raises house prices a little”

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