You are here: Home - Mortgages - Remortgage - News -

Government plans incentives for downsizing

0
Written by: Christina Hoghton
19/01/2017
The government intends to offer older homeowners sweeteners to move out of their family home, it has been reported.

There have been reports the government plans to use incentives to encourage downsizing in retirement, including a Stamp Duty exemption, or help with moving costs, for those selling a large family home and buying an ‘age-appropriate’ property.

Communities Secretary Sajid Javid is expected to set out plans for the incentives in the housing White Paper due later this month.

Saga’s director of communications, Paul Green, welcomed the idea: “If the government can bring in measures to enable people to ‘rightsize’ in retirement this would be a true inter-generational solution to the housing crisis and would deliver on Mrs May’s promise of helping young and old alike.

“People should be free to choose how and where they live. However, there are many people who want to downsize but are put off because of the cost.  Saga has been lobbying successive governments for a Stamp Duty exemption for downsizing and buying age-appropriate homes.

“This would be a triple win for Britain and for inter-generational fairness.”

Independent economists estimated that a Stamp Duty exemption for downsizers would prompt an extra 111,000 family homes to come onto the market as well as requiring the building of homes suited to older generations. It could also boost the government coffers due to an estimated £500m in Stamp Duty from consequential house moves.

Demand for downsizing

Saga research shows that seven in 10 over 50s would like to move in retirement to smaller homes or age-related developments, but there are not enough appropriate properties. Only 1% of Britons live in retirement developments, compared with 17% in the US and 13% in Australia.

There are 3.4 million households aged over 65 who could potentially downsize, according to Saga – 1.1 million have one spare bedroom and 2.3 million have two or more spare bedrooms.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
trump
Why this fund manager is ditching US equities ahead of Trump presidency

US shares are up 6% since Donald Trump’s surprise election win in November, but one fund manager says he will...

Close