MP’s could propose a tax incentive to encourage elderly to downsize their homes in an attempt to aid the housing crisis in the UK.
Under new proposals a tax break would be offered if downsizing occurred under proposals fro a “Help to Move” package. The proposal would see pensioners selling property worth up to 250,000 avoiding stamp duty as well as providing aid with mortgages or a loan for those struggling to obtain a mortgage.
The proposals come following research that showed that a third of pensioners were keen to downsize with 25% keen to settle in a retirement property. Despite these figures from thinktank Demos, the survey also revealed that almost half of those keen to move could not bridge the gap between buying and selling a property.
Up to 4.3 million houses
Research conducted showed that although the Government may lose out on stamp duty of up to £2,500, the incentive could see up to 4.3 million houses freed up by pensioners moving freeing up homes for families to move in to.
Committee chairman Lord Best, former head of the National Housing Federation, said: “More and more people in their ‘extended middle age’ are thinking about downsizing.
“This can mean much reduced fuel bills and maintenance costs, perhaps the release of some capital, and can prevent a forced move in later life, but downsizing is not easy.”
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