While house prices have spiralled in recent years, there has been a relatively small increase in the threshold over which Stamp Duty applies. The last time the threshold went up was in the 2006 Budget when it was raised by a measly £5,000 to £125,000. The tax is now charged at 1% on homes between £125,000 and £250,000, 3% over £250,000 and 4% over £500,000.

With the average UK house price around £218,000, most buyers will be shelling out for the tax on top of their legal and mortgage arrangement fees and other related expenses.

While the Scottish housing market is relatively buoyant compared with other parts of the UK, there's anecdotal evidence of a slowing down. Potential sellers are staying put because they are worried they won't be able to get the price they want, "For Sale" signs are up for longer and transactions are falling through because some buyers are struggling to get their mortgages approved during the credit crunch.

That's why Warners estate agency and solicitors in Edinburgh is calling for "short, sharp action on Stamp Duty". It wants the Government to help embattled buyers and sellers by either freezing payments or temporarily raising the threshold to £250,000 to give a much needed boost to the UK property market.

Scott Brown, estate agency partner with Warners, said: "Sellers are becoming increasingly reluctant to buy first, then sell. When this is added to the slowdown in sales of entry level properties to first-time buyers, the market has stagnated. That is not a good position for anyone – from the individual homeowner to the Scottish economy in general."

While his argument makes sense, it seems a move the Government would be unlikely to make because of the revenue – around £6.4bn – it would lose each year. However, it has been done before. In 1992, with the property market slowing dramatically, and the economy struggling with recession, Tory chancellor Norman Lamont introduced a holiday from stamp duty for eight months. The idea was to reinvigorate the property market and prevent a total collapse. By the middle of the year, transactions had nearly doubled. Although activity fell off again, industry experts believe the policy helped put a floor under the market, preventing an even worse slump.

Given the unpopularity of Gordon Brown, Alistair Darling and company in the opinion polls, a move to give voters some respite from Stamp Duty could prove to be an election winning decision for Labour.

As Scott says, an act of generosity by the Government would go a long way to tackling claims that Stamp Duty is just a stealth tax to bolster the Exchequer.

Happy holidays
THERE was good news for travellers last week. The Financial Services Authority published its final rules on regulating travel insurance sold alongside a holiday. This will cover a whole variety of firms which currently offer insurance, including travel agents, tour operators, airlines and ferry and train companies.

From next year, firms offering travel insurance must have staff who are fully trained to sell products and customers must be given "clear, concise and consistent information" about a firm's services and products so they can make the right choices. Most importantly, customers will be able to obtain compensation if something does go wrong.

There have been too many horror stories of holidaymakers finding out they don't have appropriate cover when they lose their luggage or fall ill, so consumer protection is to be welcomed. While regulation is not without its problems – one of the main ones being the mountains of paperwork consumers are supposed to wade through – it has helped in other industries. For example, since mortgage brokers came under the FSA's radar in 2004, there has been a crackdown on bad advice.

Star rating
COULD your star sign affect your car insurance? If research by comparison site Moneysupermaket.com is to be believed, driving ability and astrology go hand in hand.

It found that reckless Aries are responsible for the most motoring accidents, while Sagittarians are the accurate archers at the other end of the table.

As Moneysupermarket.com points out, motorists responsible for a crash are not only likely to pay an excess, get points on their licence and lose their no claim discount, but also end up forking out hundreds of pounds more when renewing their annual policy.

I don't know where that leaves drivers who are born on the cusp.