The ongoing shortage of property is not helped by an illiquid market and recent press has highlighted Stamp Duty is generating less than half that anticipated following recent significant rises in the cost of Stamp Duty. Recent announcements by McCarthy and Stone reinforce this.
We believe that there are a number of policy options available to the Government to encourage and assist those wishing to move to more suitable retirement housing. On 21 October, we wrote to the Chancellor of the Exchequer to request that he considers a reduction in Stamp Duty for homeowners looking to downsize. We firmly believe this would be a highly effective incentive that would help people to move, provide a much-needed stimulus to the wider housing market by freeing up large family-sized homes for those lower down the housing chain, and could result in a net revenue increase for the Treasury of some £740m per year through increased Stamp Duty receipts from the additional housing chains created as a result.