Estate agent urges Chancellor for stamp duty incentive for older homeowners

A stamp duty break for downsizers could free up more than 500,000 homes in just one year, according to new research.

Data from estate agents Jackson-Stops reveals that stamp duty relief for downsizers could unlock over half a million homes in the short term, with a further 2.8 million properties potentially released to the market if made permanent.

The estate agents are urging Chancellor Rachel Reeves to introduce a stamp duty incentive, such as removing or reducing the charge for homeowners over-55s.

More than a fifth of over-55s never plan to downsize

Since 1st April 2025, the cost of stamp duty increased for homebuyers when the temporary changes to the tax thresholds that were put in place in September 2022 came to an end.

The ‘nil rate’ band for home movers moved from £250,000 back to £125,000, estimated to impact hundreds of thousands of purchases.

For downsizers, currently, stamp duty rates are progressive, ranging from 0% to 12% depending on property value.

As an example, a property priced at £500,000 would incur stamp duty of £15,000, calculated on the progressive bands up to 5%.

For many, this makes the real cost of moving to a smaller home feel much larger, acting as a reason to stay put.

According to Jacksons Stops, more than a fifth (22%) of over-55’s never plan to downsize but among those who do intend to move, 15% said they would do so within the next year if stamp duty were reduced or removed on their onward purchase, the equivalent of 505,000 homes potentially released onto the market within 12 months.

More than, 41% said they would downsize within two years under the same conditions, representing 1.4 million older home movers across England.

Stamp duty is blocking supply

Nick Leeming, chairman of Jackson-Stops, urges the Chancellor Rachel Reeves to introduce targeted stamp duty relief for older homeowners.

He said: “Stamp duty is acting as a brake on the housing market, keeping older homeowners in properties that no longer suit their needs and blocking supply for younger families.

“Our research shows that stamp duty concerns rank alongside the stress and cost of moving as key obstacles preventing older homeowners from downsizing, with over a quarter citing it as making downsizing financially unattractive.

“With the right incentive, such as targeted relief on stamp duty for downsizers, over half a million people are willing to move in the next 12 months. In total, 2.8 million over-55s across England say they would downsize if stamp duty were reduced or removed, revealing the true scale of pent-up demand being held back by current tax policy.

“At a time when the Chancellor faces pressure to boost tax revenues, carefully designed stamp duty relief for downsizers could offer a valuable short-term solution, stimulating market activity, releasing homes, and generating additional tax receipts that might otherwise be delayed or lost.”

Homes designed for older people

The report also reveals one in five homeowners over 55 would downsize if there were more homes specifically designed for older people available, rising to 28% and 27% in the East Midlands and Yorkshire & the Humber.

Jacksons Stops this indicates the lack of age-appropriate stock in these regions as the government’s Older People’s Housing Taskforce works to expand suitable housing supply.

Mr Leeming says reducing the cost of moving for older homeowners is important.

He adds: “As the government’s Older People’s Housing Taskforce works to expand suitable supply, the government also needs to address these barriers to truly unlock market movement – the UK is significantly behind other nations in planning for older people’s housing.

“If we want to encourage greater fluidity in the market and free up larger homes for growing families, reducing the cost of moving would be a good step. More sales stock would improve affordability for younger buyers looking to upsize, supporting intergenerational fairness and boost market activity to support economic growth.”

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