Half of over-65s see stamp duty as a barrier to moving home, despite 58% considering relocating to a smaller property in future, research from Family Building Society has found.
The survey of more than 1,800 people found that 49.5% regarded Stamp Duty Land Tax as a major disincentive to “rightsizing” into a home better suited to later life.
It accompanied a report from the Radix Big Tent Housing Commission proposing measures to unlock as many as 870,000 family homes currently occupied by older owners.
The commission, whose members include Family Building Society, argued that a lack of movement among older homeowners was restricting the availability of larger properties for younger families.
STAMP DUTY RELIEF PROPOSED
Its flagship recommendation is a pilot stamp duty relief scheme for older movers modelled on the support available to first-time buyers.
Under the proposal, buyers above an age threshold (suggested as 65) would qualify when replacing their main residence. A refund could be claimed if their former home were sold after the new purchase.
The relief would not be available to owners of second homes or buy-to-let properties.
Alex Notay, chair of the Radix Big Tent Housing Commission, said: “The UK is rapidly becoming a super-ageing society with a stark and growing generational housing divide. Solutions need to address all segments of our population and provide a range of housing options that people of all ages can positively and proactively choose.
“‘Rightsizing’ can provide comfort, safety and health benefits to later-life movers as well as unlocking properties with more bedrooms, less suitable for older couples and single occupants, for larger families in need.
“Our Housing Commission has outlined a number of ways that the Government can support later-life movers. From reducing the perceived financial risks, to ensuring a larger supply of housing suited to movers’ needs and recognising the value of later life – we believe the recommendations in this report will help to remove many of the barriers preventing the people of the UK finding the right home as they age.”
SPECIALIST HOUSING SHORTAGE
More than half of respondents (53%) identified the lack of suitable housing as another reason not to move.
The report said only around 5,000 specialist later-life homes were being built annually out of approximately 200,000 new homes nationwide. Respondents particularly highlighted a shortage of bungalows.
It estimated that rightsizing could release up to two million spare bedrooms while helping older people move before health or care needs make relocation unavoidable.
Alistair Nimmo, director of marketing at Family Building Society, said: “Our survey has indicated that 57% of the over-65s would consider moving to a smaller home in later life and that half see taxation as a reason not to.
“The policies outlined in the Housing Commission report, of which we were delighted to be a part, would go a long way to enabling that ‘rightsizing’ and freeing up of up to 870,000 family homes to help solve the housing crisis.
“There is clearly a desire for many over-65s to find a more appropriate home to live well in for the later stages of their lives and we believe that this report contains concrete steps for the Government to help them do so – with support and positivity.”
Ben Rich, chief executive officer of Radix Big Tent, added: “Even with Burnham’s renewed push to provide more council housing, the Government is going to get nowhere near meeting its 1.5 million housing target in this Parliament. We have to be more radical if we are really going to get the housing market moving again, which means incentivising older people to find homes better suited to their needs.”
