Stamp duty relief for downsizers could unlock over half a million homes within just 12 months, according to new research from national estate agency Jackson-Stops – delivering an immediate boost to housing supply and wider economic activity[1].

The research, which looks at the impact of the prohibitive property tax on older homeowners, found that over a fifth (22%) of over-55’s never plan to downsize[2]. 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, comments: “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.”

Downsizing Trends Over Half A Decade

New analysis from Jackson-Stops shows that interest from downsizers surged in 2022, with a 39% year-on-year rise in registrations, likely driven by post-pandemic life reassessments and a buoyant property market[4]. But that momentum has since faltered, with growth dropping in 2023 and remaining relatively flat into 2025.