Half a Million Homes Could Be Freed Up – Thanks to a Simple Stamp Duty Change

A targeted stamp duty break could bring long-awaited movement to the housing market. Research suggests over half a million homes could be unlocked within 12 months — if older homeowners were given the right incentive to downsize.

The UK property market may be missing a critical lever to release supply: stamp duty relief for downsizers. New research by national estate agency Jackson-Stops reveals that 15% of homeowners aged 55+ would downsize within a year — if stamp duty was reduced or removed on their onward purchase. That’s equivalent to over 500,000 homes being freed up in just 12 months. Currently, 22% of older homeowners say they have no intention to downsize, with many citing stamp duty as a financial disincentive. The findings combine English Housing Survey data with responses from 2,000 homeowners aged 55 and above. Nick Leeming, Chairman of Jackson-Stops, explains: “Stamp duty is acting as a brake on the housing market, keeping older homeowners in homes that no longer suit their needs. It’s preventing the release of suitable housing for younger families — particularly first-time buyers.”

Over a quarter of older homeowners view stamp duty as making downsizing financially unattractive, placing it alongside the general stress and cost of moving as top barriers. Jackson-Stops argues that with the right incentive — such as targeted stamp duty relief — older households would be far more likely to sell and downsize. This would stimulate transactions, increase housing availability, and generate more tax revenue in the long run than current policy allows. As the government looks for ways to support the housing market without fuelling inflation, a targeted downsizer exemption could serve as a win-win solution. Leeming adds: “At a time when the Chancellor is under pressure to raise revenues, stimulating market activity via stamp duty reform may deliver faster results than expected.”