A new survey from the Family Building Society has shown that half of the over-65s see the cost of stamp duty tax as a reason not to move home in their later years. 49.5% of over 1,800 respondents said that the levy was a barrier to moving and a major disincentive to ‘rightsize’.
The research coincides with the release of the Radix Big Tent Housing Commission’s ‘Rightsizing Report’ which identifies that many over-65s are stuck in homes which are too large or expensive for them to maintain, while younger people are unable to find the family homes they need. The report found that the housing ladder is paralysed by a lack of movement at the top, and enabling ‘rightsizing’ for those in larger properties could free up around 870,000 homes to ease the nation’s housing crisis.
The report suggests that up to 2 million spare bedrooms could be released through ‘rightsizing’.
By 2030, 1-in-5 people in the UK will be over 65 according to Age UK, yet relatively few people in this age group move home, especially after their mid-seventies, until a later point, typically after 85, when a move into social care may become necessary.
Stamp duty relief scheme
The flagship recommendation of the report is the proposal for a pilot stamp duty relief scheme which mirrors that offered to first-time buyers. The proposed later life rebate on stamp duty would apply where the buyer is over a certain age threshold (the report suggests 65) and is purchasing a residential property replacing their main residence. The Housing Commission suggested that this should not be made available to homeowners who own second homes or buy-to-let properties.
Lack of specialist housing to cater for those in later life was also cited as a leading issue in the survey, with 53% of respondents seeing a lack of suitable housing options as a reason not to move.
But with barely 5,000 specially-equipped homes being built annually out of approximately 200,000 nationwide, the report identifies a missed opportunity in not delivering more specialist later life housing, underlined by a number of the respondents to the survey specifically citing a lack of available bungalows as a reason for not being able to move.
Several of the survey’s respondents replied that they would likely leave “feet first”, or that they won’t consider moving until the last possible moment. As such, the report recommends that the government promote the view of ‘rightsizing’ in later life as a positive, preventative measure which supports physical and mental wellbeing.
Chair of the Radix Big Tent Housing Commission, Alex Notay, said: “The UK is rapidly becoming a super-ageing society with a stark and growing generational housing divide. 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.”
Alistair Nimmo, director of marketing at the Family Building Society, commented: “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. 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.”
Ben Rich, CEO of Radix Big Tent, added: “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. 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.”
