New analysis carried out by Jackson-Stops has revealed that stamp obligation reduction for downsizers would nearly actually ship a direct enhance to housing provide and wider financial exercise.
The property company regarded on the influence of the prohibitive property tax on older householders and located that over a fifth (22%) of over-55’s by no means plan to downsize. Nevertheless, amongst those that do intend to maneuver, 15% stated they’d achieve this inside the subsequent 12 months if stamp obligation have been diminished or eliminated on their onward buy – the equal of 505,000 houses probably launched onto the market inside 12 months.
Wanting barely additional forward, 41% stated they’d downsize inside two years below the identical situations, representing 1.4 million older residence movers throughout England ready within the wings (see Desk 1, P.3)[3].
The findings mix information from the English Housing Survey with responses from 2,000 householders aged 55 and over throughout England. The headline figures are modelled solely on those that expressed an intention to downsize from their most important residence. These respondents have been then requested how stamp obligation reduction would have an effect on the timing of their determination.
Nick Leeming, chairman of Jackson-Stops, commented: “Stamp obligation is performing as a brake on the housing market, protecting older householders in properties that now not swimsuit their wants and blocking provide for youthful households. Our analysis exhibits that stamp obligation issues rank alongside the stress and price of transferring as key obstacles stopping older householders from downsizing, with over 1 / 4 citing it as making downsizing financially unattractive.
“With the suitable incentive, comparable to focused reduction on stamp obligation for downsizers, over half one million individuals are prepared to maneuver within the subsequent 12 months. In whole, 2.8 million over-55s throughout England say they’d downsize if stamp obligation have been diminished or eliminated, revealing the true scale of pent-up demand being held again by present tax coverage. At a time when the Chancellor faces strain to spice up tax revenues, fastidiously designed stamp obligation reduction for downsizers may supply a helpful short-term answer – stimulating market exercise, releasing houses, and producing further tax receipts which may in any other case be delayed or misplaced.”
Jackson-Stops has projected the variety of houses that will come onto the market over a five-year interval if stamp obligation reduction was offered to downsizers.
The information signifies that 1.8 million houses could be launched inside three years, rising to 2.5 million properties by 12 months 5 (See Desk 1). The analysis discovered that London, the East of England, and the South West would see the best inventory launched.
Desk 1. Shifting timelines for downsizers if stamp obligation have been diminished or eliminated.
| Timeline | No. houses launched to market (cumulative every year) |
| Inside 1 12 months | 505,000 |
| Inside 2 years | 1.4m |
| Inside 3 years | 1.8m |
| Inside 4 years | 2m |
| Inside 5 years | 2.5m |
| With 5+ years | 2.8m |
*Supply: Jackson-Stops 2025 Downsizer Survey outcomes based mostly on householders aged 55+ in England
Word: Figures symbolize most market potential
One in 5 householders over 55 would downsize if there have been extra houses particularly designed for older individuals out there, rising to twenty-eight% and 27% within the East Midlands and Yorkshire & the Humber, a sign of the shortage of age-appropriate inventory in these areas. The findings come as the federal government’s Older Folks’s Housing Taskforce works to increase appropriate housing provide throughout the nation.
A fifth (21%) cited desirous to relocate as a key downsizing driver, peaking at 27% amongst youthful downsizers (55-64 12 months olds). South East residents confirmed the strongest need to maneuver location when downsizing (25%).
Leeming continued: “Potential downsizers are on the market and searching, however many nonetheless lack a driving purpose to maneuver from window consumers to critical movers. That is usually a technology of people that have lived in giant household houses for a lot of many years, discovering themselves years later as unintentional millionaires wherein the worth of their property has largely been constructed on silent home worth inflation and capital preservation.
“In actuality, the mixed prices of tax, removals, administration and authorized charges create a big psychological and monetary barrier in comparison with what they possible confronted of their final transfer. As the federal government’s Older Folks’s Housing Taskforce works to increase appropriate provide, authorities additionally wants to handle these limitations to really unlock market motion – the UK is considerably behind different nations in planning for older individuals’s housing.
“If we wish to encourage higher fluidity available in the market and liberate bigger houses for rising households, lowering the price of transferring could be step. Extra gross sales inventory would enhance affordability for youthful consumers trying to upsize, supporting intergenerational equity and enhance market exercise to assist financial development.”
Since 1st April 2025, the price of stamp obligation elevated for homebuyers when the short-term modifications to the tax thresholds that have been put in place in September 2022 got here to an finish. The ‘nil fee’ band for residence movers moved from £250,000 again to £125,000, estimated to influence tons of of 1000’s of purchases. The UK continues to have the very best property taxes of any superior economic system all over the world, with the stamp obligation invoice paid by the purchaser on completion of their transaction.
For downsizers, presently stamp obligation charges are progressive, starting from 0% to 12% relying on property worth. For example, a property priced at £500,000 would incur stamp obligation of £15,000, calculated on the progressive bands as much as 5%. Nationwide information reveals UK home costs have elevated by 237% since 2000; an unprecedented fee of incline that has far outpaced the broader economic system and dragged the price of tax up with it. For a lot of, this makes the actual price of transferring to a smaller residence really feel a lot bigger, performing as a purpose to remain put.
