Survey of older homeowners reveals tax costs and lack of specialist housing are suppressing later-life moves
Half of people aged over 65 regard Stamp Duty Land Tax as a reason not to move home, according to a survey conducted by the Family Building Society.
The findings accompany a report from the Radix Big Tent Housing Commission calling for tax relief to encourage what it terms "rightsizing" — moving to a property better suited to needs in later life.
The survey, which polled more than 1,800 over-65s, found that 49.5% identified stamp duty as a disincentive to move, despite 58% saying they had considered moving to a smaller property and 42% citing a need for more appropriate specialist facilities as a condition for doing so.
The Commission's Rightsizing Report argues that the housing ladder is being held back by insufficient movement at the upper end of the market. It estimates that enabling more later-life moves could release up to 870,000 family homes and as many as two million spare bedrooms back into the market.
The report's headline recommendation is a stamp duty relief scheme for older buyers, modelled on the relief already available to first-time buyers. Under the proposed pilot, the rebate would apply to homeowners aged 65 or over who purchase a residential property to replace their main residence. The relief would be triggered upon sale of the previous home and would not be available to those who own second homes or buy-to-let properties.
The report also identifies a shortage of specialist later-life housing as a significant obstacle. Some 53% of respondents said limited suitable housing options were a reason not to move. Citing the Mayhew Review, the report notes that residents of specialist later-living housing face a lower risk of health problems, generating approximately £3,500 per year in savings for the NHS and social care. However, only around 5,000 specially equipped homes are built annually out of approximately 200,000 built nationwide.
The Commission also highlights a cultural dimension, noting that the dominant "downsizing" narrative — associated with loss and disruption — discourages proactive moves. It recommends that government promote rightsizing as a positive step supporting physical and mental wellbeing in later life.
By 2030, one in five people in the UK will be aged over 65, according to Age UK, yet the report notes that moves among this group are rare after the mid-seventies, typically occurring only after the age of 85 when social care needs arise.
"The UK is rapidly becoming a super-ageing society with a stark and growing generational housing divide," said Alex Notay (pictured right), chair at the Radix Big Tent Housing Commission.
"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."
"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," said Alistair Nimmo (pictured right), director of marketing at the Family Building Society.
"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."
"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," added Ben Rich (pictured right), chief executive of Radix Big Tent.
"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."
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