Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Stamp Duty and Lack of Suitable Homes Prevent Older Homeowners from Moving

Nearly half of over-65s consider stamp duty land tax a reason to avoid moving home, according to research by Family Building Society. The same research found that more than half of respondents also cited a lack of suitable housing options as a barrier to relocating.

The survey revealed that 49.45% of over-65s identified stamp duty as a major obstacle to moving, despite 58% expressing a desire to downsize. Respondents described stamp duty levies as a significant barrier to 'right-sizing'—moving to a home more appropriate for later life needs.

The findings support recommendations from the Radix Big Tent Housing Commission’s Rightsizing Report, which argues that limited 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 address this, the commission has proposed a pilot stamp duty relief scheme for older movers, similar to the support currently available to first-time buyers. Under this 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 investors.

In addition to stamp duty, the shortage of suitable properties—particularly bungalows and specialist later life housing—was highlighted by more than half of survey respondents as a reason not to move. The report suggests that tackling both stamp duty costs and the lack of appropriate homes could encourage more older homeowners to relocate, potentially increasing housing market activity and releasing more family-sized properties for buyers.

These findings are relevant for UK letting agents and inventory clerks, as changes in stamp duty policy and the availability of suitable homes for older movers could impact housing supply and demand dynamics across the sector.