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.
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. 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).
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. But that momentum has since faltered, with growth dropping in 2023 and remaining relatively flat into 2025.
Graph 1: How the number of downsizers registering with Jackson-Stops has changed, indicative of wider industry
Graph 1 shows the year-on-year percentage change in the number of downsizers registering with Jackson-Stops between 2021 and 2025. The vertical axis represents growth relative to 2021 levels, not total registration volume – meaning a 0% change reflects the same number of applicants as in 2021, rather than no applicants at all. Positive values indicate an increase in downsizer registrations compared to the previous year, while negative values reflect a slowdown in activity.
Unlocking Housing Stock: A Five-Year Projection
Jackson-Stops has projected the number of homes that would come onto the market over a five-year period if stamp duty relief was provided to downsizers.
The data indicates that 1.8 million homes would be released within three years, rising to 2.5 millionproperties by year five (See Table 1). The research found that London, the East of England, and the South West would see the greatest stock released.
Table 1. Moving timelines for downsizers if stamp duty were reduced or removed.
| Timeline | No. homes released to market (cumulative each year) |
| Within 1 year | 505,000 |
| Within 2 years | 1.4m |
| Within 3 years | 1.8m |
| Within 4 years | 2m |
| Within 5 years | 2.5m |
| With 5+ years | 2.8m |
*Source: Jackson-Stops 2025 Downsizer Survey results based on homeowners aged 55+ in England
Note: Figures represent maximum market potential
Demand for Age-Appropriate Housing
One in five homeowners over 55 would downsize if there were more homes specifically designed for older people available, rising to 28% and 27% in the East Midlands and Yorkshire & the Humber, an indication of the lack of age-appropriate stock in these regions[5]. The findings come as the government’s Older People’s Housing Taskforce works to expand suitable housing supply across the nation.
A fifth (21%) cited wanting to relocate as a key downsizing driver, peaking at 27% among younger downsizers (55-64 year olds). South East residents showed the strongest desire to move location when downsizing (25%).
Nick Leeming continues: “Potential downsizers are out there and looking, but many still lack a driving reason to move from window shoppers to serious movers. 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 boost market activity to support economic growth.”
A frozen market
Since 1st April 2025, the cost of stamp duty increased for homebuyers when the temporary changes to the tax thresholds that were put in place in September 2022 came to an end. The ‘nil rate’ band for home movers moved from £250,000 back to £125,000, estimated to impact hundreds of thousands of purchases. The UK continues to have the highest property taxes of any advanced economy around the world, with the stamp duty bill paid by the purchaser on completion of their transaction.
For downsizers, currently stamp duty rates are progressive, ranging from 0% to 12% depending on property value. As an example, a property priced at £500,000 would incur stamp duty of £15,000, calculated on the progressive bands up to 5%. Nationwide data reveals UK house prices have increased by 237% since 2000; an unprecedented rate of incline that has far outpaced the wider economy and dragged the cost of tax up with it. For many, this makes the real cost of moving to a smaller home feel much larger, acting as a reason to stay put.
Spotlight on the Prime downsizing market
Jackson-Stops’ national database within the prime property market suggests over half of downsizers in 2025 (56%) are looking for three-bedroom homes to suit their changing needs. This figure has largely remained the same for the past five years, in which three bedrooms remained the golden number. The preference for a detached house has also prevailed over the years, as the most popular property type for those aged over 55.
