Jackson-Stops said that scrapping stamp duty would offer an immediate boost to housing supply and wider economic activity.
Its research looked at the impact of the property tax on older homeowners, finding that over a fifth (22%) of over-55s never plan to downsize.
Among those who do intend to move, 15% said they would do so within the next year if stamp duty were reduced or removed on their onward purchase – the equivalent of 505,000 homes potentially released onto the market within 12 months.
Looking further ahead, 41% said they would downsize within two years under the same conditions, representing 1.4 million older home movers across England.
Nick Leeming, chairman of Jackson-Stops, said: “Stamp duty is acting as a brake on the housing market, keeping older homeowners in properties that no longer suit their needs and blocking supply for younger families.
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“Our research shows that stamp duty concerns rank alongside the stress and cost of moving as key obstacles preventing older homeowners from downsizing, with over a quarter citing it as making downsizing financially unattractive.
“With the right incentive, such as targeted relief on stamp duty for downsizers, over half a million people are willing to move in the next 12 months. In total, 2.8 million over-55s across England say they would downsize if stamp duty were reduced or removed, revealing the true scale of pent-up demand being held back by current tax policy.
“Stamp duty relief for downsizers could offer a valuable short-term solution – stimulating market activity, releasing homes, and generating additional tax receipts that might otherwise be delayed or lost.”
