Suffolk Building Society has made the unusual move of adding its voice to calls for changes in stamp duty, which earlier this year include a report backed by Lord Mandelson and Lord Heseltine.

The lender wants changes that will encourage the many older homeowners who are considering moving down the ladder to a smaller property to do so. This would have the knock-on effect of freeing up the property market at every level and in particular improve the supply of homes for growing families and first-time buyers.

Downsizing

The society’s research shows that 15% of UK homeowners said they would downsize or were considering doing so within the next five years, and 60% said they would be more likely to move to a smaller property if there was less Stamp Duty to pay.

Suffolk Building Society does admit that it isn’t appropriate for every older person or empty nester to downsize, but their research highlights that more people might be willing to do so if the relevant changes were made to the tax.

Their research highlights that more people might be willing to downsize if the relevant changes were made to Stamp Duty.”

They also add that if there is to be a significant increase in downsizing, the right types of properties must also be available for them to move to, in the right locations, and at the right price.

Bungalows high

Bungalow used to be the downsizer’s preferred choice but according to the National House Building Council (NHBC), ‘new bungalows have all but disappeared’ with only 228 registrations in Q3 2023. This is 70% down on the same period in 2022 and the lowest figure recorded by NHBC in its 80-year history.

Richard Norrington (main image), CEO, Suffolk Building Society says: “There is a significant opportunity to create many new homes to meet the rising demand across the nation. However, it is crucial to consider the types of properties needed by today’s and future homeowners”.