Older homeowners split on stamp duty cut proposal: Key

A survey from Key claims that a stamp duty cut for last-time buyers would have no impact on the decision to downsize for 37 per cent of homeowners aged 65 and over.

However, following close behind this result were 32 per cent of respondents who said that a cut would act as an incentive, but that there would still be issues with downsizing, such as finding a suitable home or not making enough money in the house sale.

Just 8 per cent of homeowners in the same age bracket said that the proposed cut would make them “definitely consider” moving.

A contentious issue, this very question was tackled in a Mortgage Strategy head to head feature in July.

Commenting on the research, Key chief executive Will Hale says: “While making changes to stamp duty is likely to appeal to some over-65s, downsizing can be more complex than anticipated so a move like this could only be part of wider solution.

“When we speak to customers, we find that they are often very attached to their home and their neighbourhood, so downsizing is not something they want to consider.

“Making changes to the stamp duty regime would only solve some of the issues that the housing market and the older generation is facing. Serious thought needs to go into this to ensure that we do not create a situation whereby people are pushed into doing something that is not actually in their best financial, emotional and social interests. Guiding customers through their options at this potentially difficult time is critical.”

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