Those surveyed said stamp duty levies were a major barrier to ‘right-sizing’ – moving to a home appropriate for later life needs.
The findings support recommendations from the Radix Big Tent Housing Commission’s Rightsizing Report, which argues that a lack of movement among older homeowners is restricting the supply of homes available to buyers. The report estimates that enabling more people to right-size could free up around 870,000 homes across the UK.
To help boost transactions, the commission has called for a pilot stamp duty relief scheme for older movers, similar to the support available to first-time buyers. Under the proposal, homeowners above a certain age would be eligible for a stamp duty rebate when purchasing a new main residence. The relief would not apply to second-home owners or buy-to-let (BTL) investors.
Housing supply preventing appropriate home moves
A shortage of suitable properties is also preventing many older homeowners from moving.
Grasping the next buy to let opportunities
Sponsored by Aldermore
More than half of survey respondents said a lack of appropriate housing options was a reason not to relocate, with many specifically highlighting the limited availability of bungalows and specialist later life housing.
The report argued that addressing both stamp duty costs and the shortage of suitable homes would encourage more older homeowners to move, increasing housing market activity and releasing more family-sized properties for buyers.
Alex Notay, chair of the Radix Big Tent Housing Commission, said: “The UK is rapidly becoming a super-ageing society with a stark and growing generational housing divide. Solutions need to address all segments of our population and provide a range of housing options that people of all ages can positively and proactively choose.
“‘Right-sizing’ can provide comfort, safety and health benefits to later life movers as well as unlocking properties with more bedrooms, less-suitable for older couples and single occupants, for larger families in need.”
Ben Rich, CEO of Radix Big Tent, said: “Even with Burnham’s renewed push to provide more council housing, the government is going to get nowhere near meeting its 1.5 million housing target in this Parliament. We have to be more radical if we are really going to get the housing market moving again, which means incentivising older people to find homes better suited to their needs.”
