Jonathan Rolande, founding member of the National Association of Property Buyers (NAPB), said retired people who considered moving to a smaller home faced stamp duty costs of up to £30,000.
Rolande said: “That would be, sometimes in their opinion, a negative move because they’ll be going from a bigger family house to somewhere smaller.
“So, it costs them £30,000 for the privilege of living somewhere inferior. People are resisting that and staying in large family homes.”
He said removing some of the costs associated with buying and moving would encourage older people to free up more bedrooms. He said there was proof this could be popular due to the success of the stamp duty holiday.
Rolande said it would be up to the government to work out how this is implemented if taken on, but suggested it should be open to every homeowner of retirement age.
He went on to say this would lead to the government “losing a very valuable revenue source” but said any tax income lost from people not paying a levy on the way down the property market, could be recovered by those paying it on the way up.
Rolande added: “They’re buying that property which otherwise isn’t being sold. So, it could have a positive impact on the Treasury.”
He said other costs paid during the moving process such as estate agent fees and removals services would also “stop the stagnation”.
Rolande added: “We’ve got a very stagnant market in lots of ways because a lot of people who want to move can’t because of lack of supply.”
He said the NAFB had been lobbying the government for this change both directly and through the press.
“It’s an opportune moment because we’re losing housing ministers at the rate of knots and the government is about to change, but we’re hoping that the government will take notice,” he added.
