Stamp Duty costs could be preventing more than 300,000 owner-occupied homes from coming to market in England within a year, according to new research from Jackson-Stops.
The estate agency estimates that removing Stamp Duty could unlock more than 300,000 homes within the next 12 months, rising to over 750,000 over three years.
Its Housing Mobility Report found that among owner-occupiers whose moving plans had been delayed, postponed or abandoned, 28% cited Stamp Duty costs as a barrier – behind economic uncertainty (42%) and mortgage rates (29%).
The research comes as the government published its roadmap for reforming the home buying and selling process, with proposals aimed at reducing delays, improving upfront information and cutting transaction times by around four weeks.
Jackson-Stops also estimates that greater certainty over transaction timelines could unlock more than 260,000 owner-occupied homes in England within a year, rising to around 700,000 over three years.
The estate agency said uncertainty over how long a transaction takes has contributed to almost one million owner-occupier households delaying, postponing or abandoning plans to move over the past five years.
Nick Leeming, chairman of Jackson-Stops, said: “Our Housing Mobility Report highlights an industry-wide challenge facing the English housing market, with would-be movers hesitating before they even begin.
“Stamp duty is clearly part of the wider mobility challenge.
“While it is not the only factor shaping moving decisions, our data shows it remains a meaningful barrier for some would-be movers.
“Any serious discussion about improving housing mobility should consider both the transaction process itself and the upfront costs people face when deciding whether to move.
“The Government’s proposed reforms are a positive and necessary step. Measures that improve upfront information sharing, strengthen professional standards and provide greater certainty earlier in the process should help buyers and sellers move with more confidence.
“The key now will be implementation, ensuring the reforms are phased carefully, clearly understood by consumers and workable for the agents, conveyancers, lenders and other professionals who will need to deliver them in practice.”
MILLENNIALS MOST ACTIVE
The report also points to continued intent and momentum among owner-occupiers, with 8% in England currently planning to move or already in the process.
The research suggests this activity is being supported by a mix of both practical life-stage and lifestyle-led decisions.
Among owner-occupiers who had moved, were considering moving, or had considered moving in the last five years, the leading motivations were moving to a larger home (24%) and relocating to a different area for lifestyle reasons (22%).
Millennials were the most active established owner-occupier generation, with 12% currently planning to move or already in the process of moving, compared with 8% of owner-occupiers overall.
Leeming added: “There will always be financial and personal reasons why people decide whether or not to move. But this research shows that there is a group of would-be movers who may be encouraged to act if the process feels clearer, more predictable and easier to navigate.
“Improving certainty will not solve every housing challenge, and affordability, mortgage rates and wider economic conditions will continue to shape decisions. But the home-moving process is one practical area where improvement can support confidence.
“A healthier housing market is about more than building new homes, essential though that is. It is also about helping existing homes circulate more freely, so that more people can make the move that is right for them.”
