Why downsizing stamp duty exemption may be key to some first some buyers.
In a recent survey by the retirement developer McCarthy & Stone, over a fifth of pensioners say they would be encouraged to downsize if there was a stamp duty incentive – particularly an exemption to help them do so.
Such perks for over 65s would boost downsizing and kick start sales across the housing supply chain for first time buyers.
According to the firm, there are 2.6m potential downsizers who could release £230.8 billion worth of equity from their homes, whilst freeing up a total of £924.9 billion of housing stock.
A report by law firm Collyer Bristow suggests that a full 100 percent of 20 to 24 year olds hope to buy their own property one day – but this slumps to just 59 per cent for 25 to 34 year olds.
Funding a deposit
The survey also asked those wanting to buy a home how they intended to fund the deposit on their prospective house purchase.
Help to Buy remains important with 23 per cent saying they were only able to get onto the property ladder with this help from the government. For many home buyers, personal savings play a big role with a surprisingly high number of purchases reliant on inheritance and 32 per cent receiving help from the ‘Bank of Mum and Dad’.
A Help to Move scheme
Whilst there seems to be plenty of focus on building homes for first time buyers, last-time buyers seem to have been forgotten. With the UK’s population rapidly ageing, we are facing a potential demographic time bomb. So perhaps what is needed is a Help to Move scheme, which would encourage downsizing for millions of older people who want to move, and enable them to release equity to help to finance their children’s property purchase.
