According to research from estate agency Jackson-Stops, over a fifth of over-55s never plan to downsize, but 15% said they would do so in the next year if stamp duty was reduced or removed on their next purchase – equal to 505,000 homes.
Looking ahead, around 41% said they would downsize if stamp duty changes came into effect, equal to 1.4 million older homemovers.
| Timeline | Number of homes released to market (cumulative each year) |
| Within one year | 505,000 |
| Within two years | 1.4 million |
| Within three years | 1.8 million |
| Within four years | 2 million |
| Within five years | 2.5 million |
| Within five-plus years | 2.8 million |
Research also shows that interest from downsizers increased in 2022, with a 39% increase in registrations.
This was possibly driven by “post-pandemic life reassessments and a buoyant property market”.
Aldermore Insights with Jon Cooper: Edition 4 – Budget 2025: Landlords feel the heat, brokers to steer the market
Sponsored by Aldermore
However, the report shows that this momentum for downsizing has since fallen to below 25%.
For downsizers, currently stamp duty rates are progressive, ranging from 0% to 12%, depending on property value. For instance, a property priced at £500,000 would incur a stamp duty of £15,000, calculated on the progressive bands up to 5%.
Nick Leeming, chair of Jackson-Stops, 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.”
He continued: “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.”
A fifth of homeowners aged over-55 said that they would downsize if more appropriate homes specifically designed for older people were available.
Around 21% said relocating was a key driver in their downsizing desire, going up to 27% among those aged 55-64 years old.
Leeming continued: “Potential downsizers are out there and looking, but many still lack a driving reason to move, from window shoppers to serious movers. This is often a generation of people who have lived in large family homes for many decades, finding themselves years later as accidental millionaires in which the value of their estate has largely been built on silent house price inflation and capital preservation.
“In reality, the combined costs of tax, removals, administration and legal fees create a significant mental and financial barrier compared to what they likely faced in their last move. As the government’s Older People’s Housing Taskforce works to expand suitable supply, 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.”
