Barclays, one of Britain’s largest mortgage lenders, has called on the government to introduce tax breaks and financial incentives for downsizers to encourage them to move into smaller homes, potentially freeing up 3.8 million properties for families.
The bank suggests allowing downsizers to offset moving costs against their stamp duty bill when purchasing a new home.
In a report released on Thursday, Barclays emphasised that reducing the financial burden of moving house could encourage “under-occupiers” to relocate, helping to ease the housing crisis. Alongside financial incentives, the bank called for measures to simplify the moving process and build more retirement housing.
Barclays estimates that this could significantly increase housing market liquidity, benefiting growing families in need of larger homes. “A stronger, more holistic strategy is needed to tackle the immense issues faced by the housing market,” said Mark Arnold, head of mortgages and savings at Barclays.
The call for downsizers’ support follows a report by Savills showing that over-60s account for 44% of homeowners, yet downsizers make up less than 10% of market activity. Lucian Cook, director of residential research at Savills, said reducing the stamp duty burden on downsizers could encourage more people to move, making better use of existing housing stock.
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