"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"
- Nick Leeming - Jackson-Stops
Targeted stamp duty relief for downsizers could release over 500,000 homes within a year, according to new research by national estate agency Jackson-Stops, offering a potential boost to housing availability and economic activity.
The study examined how stamp duty affects older homeowners, particularly those aged 55 and above. While 22% of respondents in this group said they had no intention to downsize, 15% indicated they would move within 12 months if stamp duty were reduced or removed for their next purchase. That proportion equates to around 505,000 homes becoming available in a year.
Looking further ahead, 41% of over-55s said they would downsize within two years under the same conditions, which would equate to 1.4 million transactions. If the stamp duty relief were made permanent, the total number of potential movers rises to 2.8 million, based on Jackson-Stops’ modelling.
The figures draw on combined data from the English Housing Survey and a poll of 2,000 homeowners aged 55 and over across England. The analysis focused exclusively on respondents who expressed an intention to downsize their primary residence, asking how changes to stamp duty would affect their timing.
“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,” said Nick Leeming, chairman of Jackson-Stops. “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.
"2At 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.”
Market shifts and housing demand
Jackson-Stops’ data also reflects changing downsizing patterns. Registrations from downsizers rose sharply in 2022, increasing 39% year-on-year, likely influenced by post-pandemic lifestyle changes and strong market conditions. However, that growth levelled off in 2023 and remained steady into 2025.
The availability of suitable housing remains a barrier. One in five over-55s said they would consider downsizing if more homes were built specifically for older people. This sentiment was strongest in the East Midlands and Yorkshire & the Humber, where 28% and 27%, respectively, cited a shortage of age-appropriate properties.
Relocation emerged as another motivator, particularly among younger downsizers aged 55–64, 27% of whom said the desire to move to a new area played a key role in their decision. In the South East, 25% of homeowners mentioned location change as a key consideration.
“Potential downsizers are out there and looking, but many still lack a driving reason to move from window shoppers to serious movers,” Leeming explained. “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 boosting market activity to support economic growth.”, he said.
Tax impact and affordability
Stamp duty costs rose on 1 April 2025, as temporary thresholds introduced in 2022 expired. The nil-rate band for home movers reverted from £250,000 to £125,000, affecting a broad swathe of buyers. The UK continues to rank among the highest property-taxed countries globally, with buyers required to pay the full stamp duty bill at completion.
For those looking to downsize, stamp duty rates apply progressively from 0% up to 12%. For instance, a £500,000 home purchase incurs £15,000 in stamp duty. Since 2000, UK house prices have increased by 237%, significantly outpacing wage growth and making the cost of moving appear disproportionate, particularly for those looking to buy smaller homes.
Downsizer preferences in 2025
The Jackson-Stops prime market database shows that 56% of downsizers in 2025 are looking for three-bedroom homes, a figure that has remained largely unchanged over five years. Detached houses continue to be the preferred option among this age group, reflecting long-standing preferences for space, privacy, and familiar living arrangements.
