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 Deter Older Homeowners from Downsizing

A recent survey by Family Building Society has found that stamp duty and a shortage of suitable properties are among the main reasons why many homeowners aged 65 and over are reluctant to downsize. The survey revealed that around 60% of older homeowners have considered downsizing, but over half cited stamp duty as a barrier.

The survey, conducted among Family Building Society members, also found that about half of respondents were concerned about losing connections to friends, family, and their local community if they moved. Access to local amenities was highlighted as a key factor for three in five respondents, especially for those less able to drive.

A further 54% of those surveyed said there was a lack of suitable homes available, particularly bungalows. The findings were referenced in support of a recent Radix Housing Commission report, which suggested the government could pilot a stamp duty relief scheme for older homeowners, similar to the relief available to first-time buyers.

The Radix report also noted that of the 200,000 newly built homes each year, only 5,000 to 7,000 are suitable for later living, which is below the 50,000 needed to meet the needs of the ageing population.

These findings are relevant for UK letting agents and inventory clerks, as the reluctance of older homeowners to downsize may impact the availability of larger family homes in the rental and sales markets. The shortage of suitable later-living properties, particularly bungalows, may also influence demand patterns and property management requirements.