WHY AXING STAMP DUTY FOR DOWNSIZERS COULD HELP BOOST PROPERTY MARKET

NAPB HAS BEEN CALLING FOR STAMP DUTY CHANGE FOR TWO YEARS 

A PLAN to allow older homeowners who downsize to become exempt from paying stamp duty has been welcomed by one of the country’s largest property associations. 

A new report, backed by Lord Heseltine and Lord Mandelson, has pinpointed the measure as one way to help stimulate the housing market. 

The National Association Of Property Buyers (NAPB), who first called for this measure in 2022, warmly backed the fact that academics at the London School of Economics and University of Sheffield are now also recommending it. 

NAPB spokesman Jonathan Rolande, said: “The downturn in the property market over the last 12 to 18 months has not helped the supply of property. Many families wishing to move up market are not doing so because they are unable to find a suitable, larger property. Incentivising downsizers would kick-start a sector of the market that has been notoriously difficult in recent years. There is also a useful by-product: many downsizers purchase new-build property, another sector that has suffered during the downturn.

“Scrapping stamp duty for downsizers could provide a much-needed boost to the market and the NAPB would be hugely in favour of it.

“There are other ways in which stamp duty could be used more effectively. Around £1bn a month is paid by homebuyers, but despite tapering and exemptions for most first-time buyers, the system needs a total overhaul to make it fairer. Overseas buyers currently pay UK stamp plus 2% – we’d like to see an increase to generate revenue and help level the field for local buyers.”

The idea of axing stamp duty for downsizers was one of a number of policies suggested in the report. It also called for a revaluation of council tax bands so that the beneficiaries of higher-priced properties would pay more to support social housebuilding.

The conclusions of the report are likely to be examined closely by senior figures in the Labour and the Conservative parties as housing moves up the political agenda before this year’s election.