New research carried out by Jackson-Stops has revealed that stamp duty relief for downsizers would almost certainly deliver an immediate boost to housing supply and wider economic activity.
The estate agency looked at the impact of the prohibitive property tax on older homeowners and found that over a fifth (22%) of over-55’s never plan to downsize. However, among those who do intend to move, 15% said they would do so within the next year if stamp duty were reduced or removed on their onward purchase – the equivalent of 505,000 homes potentially released onto the market within 12 months.
Looking slightly further ahead, 41% said they would downsize within two years under the same conditions, representing 1.4 million older home movers across England waiting in the wings (see Table 1, P.3)[3].
The findings combine data from the English Housing Survey with responses from 2,000 homeowners aged 55 and over across England. The headline figures are modelled only on those who expressed an intention to downsize from their main residence. These respondents were then asked how stamp duty relief would affect the timing of their decision.
Nick Leeming, chairman of Jackson-Stops, commented: “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.
“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.”
Jackson-Stops has projected the number of homes that would come onto the market over a five-year period if stamp duty relief was provided to downsizers.
The data indicates that 1.8 million homes would be released within three years, rising to 2.5 million properties by year five (See Table 1). The research found that London, the East of England, and the South West would see the greatest stock released.
Table 1. Moving timelines for downsizers if stamp duty were reduced or removed.
| Timeline | No. homes released to market (cumulative each year) |
| Within 1 year | 505,000 |
| Within 2 years | 1.4m |
| Within 3 years | 1.8m |
| Within 4 years | 2m |
| Within 5 years | 2.5m |
| With 5+ years | 2.8m |
*Source: Jackson-Stops 2025 Downsizer Survey results based on homeowners aged 55+ in England
Note: Figures represent maximum market potential
One in five homeowners over 55 would downsize if there were more homes specifically designed for older people available, rising to 28% and 27% in the East Midlands and Yorkshire & the Humber, an indication of the lack of age-appropriate stock in these regions. The findings come as the government’s Older People’s Housing Taskforce works to expand suitable housing supply across the nation.
A fifth (21%) cited wanting to relocate as a key downsizing driver, peaking at 27% among younger downsizers (55-64 year olds). South East residents showed the strongest desire to move location when downsizing (25%).
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.”
Since 1st April 2025, the cost of stamp duty increased for homebuyers when the temporary changes to the tax thresholds that were put in place in September 2022 came to an end. The ‘nil rate’ band for home movers moved from £250,000 back to £125,000, estimated to impact hundreds of thousands of purchases. The UK continues to have the highest property taxes of any advanced economy around the world, with the stamp duty bill paid by the purchaser on completion of their transaction.
For downsizers, currently stamp duty rates are progressive, ranging from 0% to 12% depending on property value. As an example, a property priced at £500,000 would incur stamp duty of £15,000, calculated on the progressive bands up to 5%. Nationwide data reveals UK house prices have increased by 237% since 2000; an unprecedented rate of incline that has far outpaced the wider economy and dragged the cost of tax up with it. For many, this makes the real cost of moving to a smaller home feel much larger, acting as a reason to stay put.
Wow.
Let’s re-phrase this
‘Boomer would like the generation who have benefitted the most from stratospheric home value increases to be given tax incentive to sell up’
That’ll go down well with the rest of the population Nick. Well done.
The prize for ‘most politically insensitive policy suggestion of 2025’ goes to…..
Whilst everybody would like to see stamp duty cancelled. While it’s here, may we have a sensible conversation first on it, and second on the downsizers.
First – stamp is a barrier to a lack of cash amongst buyers. The easiest thing to do, frankly, would be to switch it. So it becomes a sellers tax. You pay it when you sell. There’s huge wealth in home price gains. And no right to keep all of it (and I’m sat here in a seven figure house that I paid mid six figures for over a decade ago).
You want to grease the wheels while accepting stamp is here to stay. This is how you do it. At first, sellers will ask for higher prices, however it wouldn’t take long for the market to balance itself (as it’s done over last 12-24 months).
Downsizers (elderly) – They’re pretty darn wealthy. They have nice lives.
Stop building patronising prisons and maybe they’ll buy. ‘Doris’ living alone with 6 bedrooms can afford a cleaner and a gardener. What she will not do is purchase a miserable retirement apartment. Designed to patronise her with weekly dominos/bridge and ‘chair exercise’. Doris, despite being 75 would want the support of a retirement village, but frankly, she wants a swimming pool, gym, and other luxuries.
Build what the rich, fitter, and mentally still young want to buy and they’ll move out of their large homes.
Don’t stop building what the less well off, and less fit need.
But, FFS give Doris somewhere she might actually want to downsize too.
Oh, Nick Leeming – next time, stop and think. Suggesting a policy that would be a kick in the teeth to those under 35 who can’t afford to get on the ladder is both political suicide, borderline offensive, and out of touch.
Run the numbers on switching which side pays stamp. In unbiased fashion.
Not in a fashion where it’s clear an Estate Agents just wants more higher price based commisons.
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Nick’s article says stamp duty relief would unlock 500,000 homes. I disagree — because I’m one of the people he’s talking about.
I’m a boomer, yes. But I didn’t just buy a house. I built it. Designed it myself, extended it multiple times, and did the work with my own hands. This isn’t just a property — it’s the physical result of a lifetime’s work. Every morning I sit and look at what I’ve made. That’s not just pride. It’s peace.
Yes, the house is big. My wife is in her sewing room, I’m in my office. The spare rooms get used when the grandkids visit. They know this house. They love it. Why would I give that up?
I’ve had unsolicited, serious offers — over £250,000 above what it’s worth. Not a 1% tax saving. Not a nudge. Real money. I said no.
And even if I wanted to downsize — where would I go? No one is building homes I’d want to move to. Bungalows? Proper retirement homes? They barely exist. The 220,000 new builds a year are high-density boxes crammed onto postage stamps. Not for me.
The idea that a stamp duty tweak will free up housing is fantasy. Many of us aren’t stuck. We’re staying. Because we worked hard, we planned ahead, and we’re happy right where we are.
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I read again yesterday about the possibility of brining in CGT on inherited properties. On top of IHT. If this happens the best option would be to downsize before you die to realise your capital for your children.
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So what happens here. For those moving up the ladder and can afford a more expensive property thats fabulous. Then what happens. The downsizers will be blamed for pushing prices up at the lower end of the market and will be vilified again . They’re in a no win situation.
Family sizes are shrinking and broken families are becoming more common with a family now requiring two smaller houses. So how does releasing bigger homes fit today’s society and demands? It will just create more problems as there is more demand for bigger homes.
Don’t start me on retirement villages. These are set up in such a way to maximise the financial benefit to these companies and hammer the wealth of those ageing as can be seen clearly. Those with half a mind will avoid these schemes and that’s why over 50s home are notoriously hard to sell with this inheriting them stuck with not only an additional rates bill but doubled or trebled.
As with all research, the research is defined by the answer that is sought.
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I agree that the seller should pay the stamp duty. That relieves the first time buyer and allows the seller to use capital in the house, though I accept this may be zero or less, and when they buy they don’t have the expense. However, that would appear as a double whammy on IHT as well as stamp duty and for those already paid when buying, a second tax selling would be painful to accept. Basically there is no magic answer.
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