More than half of potential home buyers put off by spectre of carbon tax

More than half (57%) of future home buyers say the proposed carbon tax is discouraging them from purchasing a property, according to an online poll by mortgage broker Loan Market.

About a quarter (22%) of the 482 respondents said they were holding off buying to see how the mooted tax would affect them, while 35% said the proposed tax had put them off buying a house entirely.

Loan Market chief operating officer Dean Rushton says the results of the poll shows the carbon tax is not something that is likely to encourage consumers in what is already a challenging market for the home finance and real estate sectors.

The carbon tax appears to be less of a worry for younger borrowers, with 51% of the 18- to 25-year-old age group saying the proposal would not delay their property moves.

More than a third (35%) of respondents still plan to buy a house despite the carbon tax plan, and 8% hope to budget around it, the poll found.

The Real Estate Institute of NSW estimates that the cost of building a house will increase by over $5,700 as a result of the Carbon Tax and additional GST and stamp duty charges.