Stamp Duty Reform Could Unlock 500,000 Homes as Downsizers Seek Relief

A bold proposal to scrap stamp duty for downsizers could free up half a million homes within a single year, according to new research from national estate agency Jackson-Stops. The findings suggest that removing this financial barrier could provide an immediate boost to housing supply and stimulate economic activity across the UK property market.

The Hidden Bottleneck in the Housing Market

Jackson-Stops’ study reveals that 22% of homeowners aged 55+ have no plans to downsize, with many citing stamp duty costs as a major deterrent. Among those open to moving, 15% said they would downsize within a year if stamp duty were reduced or abolished—translating to 505,000 homes potentially entering the market.

Looking further ahead, 41% of older homeowners indicated they would move within two years under more favorable tax conditions, representing a staggering 1.4 million properties across England.

Why Are Older Homeowners Staying Put?

Nick Leeming, Chairman of Jackson-Stops, explains:

“Stamp duty is acting as a brake on the housing market, trapping older homeowners in properties that no longer suit their needs while restricting supply for younger families. Our research shows that financial concerns—including stamp duty—are just as significant as the stress of moving in discouraging downsizing.”

Key findings from the report include:

• 27% of over-55s say stamp duty makes downsizing financially unattractive.

• 2.8 million older homeowners would consider moving if stamp duty were reduced or removed.

• The policy could unlock family-sized homes, easing pressure on first-time buyers.

A Short-Term Solution with Long-Term Benefits

With the UK facing a chronic housing shortage, experts argue that targeted stamp duty relief could provide a rapid solution without requiring large-scale new construction. Leeming adds:

“This isn’t just about helping older homeowners—it’s about revitalizing the entire market. Freeing up larger properties would create a ripple effect, benefiting first-time buyers, second-steppers, and the wider economy.”

Potential Economic Impact

• Increased market activity as more homes become available.

• Higher tax revenues from additional transactions.

• Reduced pressure on new-build housing targets.

Will the Government Act?

The proposal comes as housing remains a key political issue, with both major parties under pressure to address affordability. Similar policies, such as stamp duty holidays during the pandemic, have previously boosted market activity.

However, critics argue that long-term reforms—such as council tax overhauls or incentives for later-life lending—may be needed alongside any stamp duty changes.

What’s Next?

With pent-up demand clearly identified, the question remains: will policymakers take action to unlock this hidden housing supply?

For further reading on UK housing policy, visit:

• Savills Research on Housing Supply

• BBC News: Stamp Duty Explained

• The Guardian: Downsizing Challenges