Research from the Liberal Democrats has revealed Stamp Duty revenues could plummet by as much as £6.3bn if prices fall by 20%.

A poll by the Society of British Economists this week shows 56% of British economists anticipate an 11% to 20% drop in house prices in 2008.

Lord Matthew Oakeshott, treasury spokesman for the Lib Dems, says: “The Chancellor of Exchequer had hardly sat down on Budget Day before the housing market fell off a cliff edge in early April.

“Britain’s mortgage famine, after the wild feast led by Northern Rock, means most house sales are now forced and at knocked down prices – in this horrible market you only sell if you have to."

He adds: “Commercial property transactions have halved this year and prices are 15% down.

“Alistair Darling faces a £5bn budget black hole this year from lost Stamp Duty alone."

”Brown let Britain’s house party get out of control, now Darling has a £5bn Stamp Duty hangover."