Stamp duty relief for downsizers could free up over half a million homes within just 12 months, according to new research from national estate agency Jackson-Stops.

The research, which looks at the impact of the property tax on older homeowners, found that over a fifth (22%) of over-55’s never plan to downsize

However, 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.

The findings combined data from the English Housing Survey with responses from 2,000 homeowners aged 55 and over across the country.

Jackson-Stops chairman Nick Leeming commented: “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.

“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.

Leeming insisted that with the right incentive, such as targeted relief on stamp duty for downsizers, over half a million people would be willing to move in the next 12 months.

“At a time when the Chancellor faces pressure to boost tax revenues, carefully designed 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,” Leeming said.