Stamp duty relief for retirees will dislodge sluggish real estate market – NAPB

Retirees should be exempt from paying stamp duty when downsizing to allow more movement in the property market, a trade body has suggested.

Jonathan Rolande, founding member of the National Association of Property Buyers (NAPB), said pensioners who were considering moving to a smaller home had to pay stamp duty of up to £30,000.

Rolande said: “It would be, sometimes in their opinion, a negative decision because they will move from a larger family home to a smaller place.

“So it’s costing them £30,000 for the privilege of living in an inferior place. People are resisting this and staying in large family homes.

He said removing some of the costs associated with buying and moving would encourage older people to free up more rooms. He said there was evidence it could be popular due to the success of the stamp duty holiday.

Rolande said it would be up to the government to determine how this would be implemented, but suggested it should be open to all owners over retirement age.

He went on to say that this would lead to the government ‘losing a very valuable source of revenue’, but said any tax revenue lost by people who do not pay a levy going down the property market could be clawed back by those who do. would pay upwards. .

Rolande added: “They are buying this property which otherwise is not being sold. This could therefore have a positive impact on the Treasury.

He said other fees paid during the moving process, such as estate agent fees and moving services, would also “stop the stagnation”.

Rolande added: “We have a very stagnant market in many ways because a lot of people who want to move can’t because of a lack of supply.”

He said the ANFB had lobbied the government for the change both directly and through the press.

“It’s a good time because we are losing housing ministers at knots and the government is about to change, but we hope the government takes notice,” he added.

Shekina is the business writer for Mortgage Solutions. She has over four years of experience in the B2B publishing market, with previous industries including accounting, pets, funerals, hospitality, retail and jewelry. She currently reports mortgage market news and liaises with financial clients to produce sponsored content. Follow her on Twitter at @ShekinaMS