Consumer champion Martin Lewis (main picture) has thrown his weight behind the idea of cutting Stamp Duty for downsizers.

“It’s a very, very clever plan,” he told his own podcast, that could free up much-needed houses for families.

This is a sensible solution…and is probably not that costly.”

By abolishing Stamp Duty for older people who want to move to a smaller house, the idea is that it will make larger homes available to younger people who need more bedrooms.

“This is a sensible solution…and is probably not that costly,” Lewis said. He later revealed he was due to meet with Shadow Chancellor Rachel Reeves.

Brilliant idea

He was joined in support of the plan by Polly MacKenzie, a former adviser to the Deputy Prime Minister, who said: “It is a brilliant idea. You can get empty-nesters to downsize and free up homes.”

But she did warn it could be ‘a difficult sell’ to cut tax for older, wealthy people.

Stamp duty is charged at 5% between £250,001 and £925,000, starts at £425,000 for first-time buyers, and rises to 12% for properties exceeding £1.5million.

Lords’ backing

A report commissioned by the Family Building Society suggested the same idea, earlier this year.

The report, from the London School of Economics and University of Sheffield and sponsored by Lord Mandelson and Lord Heseltine, argued that older residents are often less likely to downsize due to a lack of financial incentives.

According to the report, the UK’s housing shortage cannot be dealt with simply by building more homes, detailing that current housebuilding targets will struggle to absorb the current demand alongside the predicted increase of 1.6 million households forecasted over the next 10 years.

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Main picture: MoneySavingExpert