New research has revealed that the cost of stamp duty is the biggest barrier to downsizing and freeing up the nation’s housing stock.
According to a survey by Later Life Ambitions, stamp duty was cited by three in 10 as the biggest barrier to downsizing. This was selected over the cost of moving home (26%), a lack of small homes on the market (25%) and a lack of suitable housing for their health needs (11%).
Later Life Ambitions is calling on the Chancellor to exempt older people who are moving into smaller properties from the Stamp Duty Land Tax ahead of the Autumn Statement.
Malcolm Booth, CEO of the National Federation of Occupational Pensioners, said: “The results of the survey show that there are many pensioners who want to move and downsize into a more suitable property, but the costs of stamp duty are prohibitive.
“We know that many younger people are struggling to get a foot on the housing ladder, and older people want to help up free up our country’s housing stock.
“Exempting people who are downsizing or redesigning Stamp Duty so those downsizing are exempt from stamp duty would go some way to addressing the problem.”
Recent analysis from McCarthy & Stone found that if homeowners that under-occupy their homes were to downsize, 766,000 homes would be released onto the market for those in housing need. This would cost less and be quicker than building new properties.
Later Life Ambitions represents 250,000 older people who are members of the National Federation of Occupational Pensioners, the Civil Service Pensioners’ Alliance, and the National Association of Retired Police Officers.
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I downsized three years ago, selling my large bungalow for £250,000 and buying a beautiful, one year old, apartment for £170,000 leaving me with £80,000 spare to pay fees etc. The apartment is ground floor, two beds, two bathrooms, lounge diner and loads of storage. Underground parking and a lift to all floors. It shows that there are properties out there that you can downsize to without paying lots in fees.